Sunday, April 30, 2023

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.

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. The bonuses would disappear and the diamond would probably have to look for a job. There are many examples of diamonds who have quit, and in some cases, went back to work.

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.

Non Income Producing Activities?

 One of the myths that my Amway upline used to, and likely still perpetuate is the claim that you can build an Amway financial empire on 8-12 hours per week. I'm venturing an educated guess that this number is used because while it still represents time, it is probably less hours than working a part time job. But let's take a closer look at this 8-12 hours per week.  (Some groups might teach 10-15 hours per week, etc.)

If you listen to one (1) cd/audio per day as recommended by upline and read one of their "success" books 15 minutes each day, you are already close to nine to ten hours of time used and neither of these activities produces any income for your Amway business. In fact, both activities cost you money and more than likely produce no tangible result. If you spend another 15 minutes a day contacting people, you are close to 12 hours per week. Where will you find additional time to show the plan and to expand your name and contact list? What about servicing customers, at least for IBOs who actually may have some customers. 

What about attending meetings and functions? These are also non income producing activities, but it actually costs an IBO money to attend.  It's no wonder the vast majority of IBOs don't make money. Their upline has them running around participating in activities that produce no income for their businesses. Ironically, these non-income producing activities such as listening to a cd/audio, produces a lot of income for certain uplines who produce and sell them. To me, it is just an elaborate game of bait and switch played by upline. They tell you that their system is foolproof and that you will make it if you don't give up. Not true.  More than likely, your losses just keep getting bigger if you "never quit".   And that's because upline's solution to a losing business is to spend more money.

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

But IBOs and information seekers, do not be fooled into thinking that you will create a financial empire by working 8-12 hours a week. That would be far-fetched. The number of highly successful Amway IBOs versus the number who sign up are fewer than lottery winners.

Friday, April 28, 2023

How You Get Sucked Into Amway?

If you have ever sat through an Amway presentation and the follow up teachings as I did, you can get a clear picture of how the uplines slowly suck people into the system. The speaker will be introduced as a picture of success. Possibly introduced as being in the top 1/10 of 1% in income (But with no proof). They will talk about how taxes, insurance, and inflation eat away at your paycheck. More than likely they will say they suffered the same way until they figured out how to defeat these issues by making more money. Of course they will eventually drop the "A" bomb on you and say it's Amway. Very likely they will say that you should not care what it is if it gets results.

You are then shown the plan and many people think that 2-5 years and "finding six" is something very manageable for the results they promote (walking the beaches while residual income flows in). At the very least they say, you will make some money and save some money. Who can argue with that kind of logic? They will also likely mention that Amway is low risk or no risk with little or no start-up costs. Again, how can you argue with that logic?

You finally convince yourself that you can do this. You sign up and you are likely told that it is important to get some tools because after all, a carpenter can't build homes without a hammer and saw and that any business owner would have to make some investment into their own business. So now because of the tools, you are operating at a loss. You may then be told that business owners normally operate at a loss for years and that it might also be wise to channel your bonuses back into your business by purchasing more tools.

Before you know it, months or years may pass before you start to realize that you are on a treadmill. You keep walking but end up going nowhere. Then your upline may tell you that the business is not about money but more about making lifelong friendships.

In my opinion, this whole system is a cleverly designed systematic way for uplines to slowly drain your resources and making you think that you are successful despite showing no profits. Your upline may edify small things like showing the plan or making a sacrifice to attend a function. Sadly, you will rarely see someone edified for actually making a net profit.

It's a slow process, but most people slowly get sucked into the system, just like quicksand. I hope IBOs and information seekers are able to recognize the scheme if and when it happens to them.

Thursday, April 27, 2023

Seriously? Dream Stealers?

 Some debates over Amway recently churned up some accusations once again about critics being "dream stealers". I thought I would address this but first I wanted to print the definition of a dream from dictionary.com:


dream  
[dreem] Show IPA noun, verb, dreamed or dreamt, dream⋅ing, adjective
Use dreams in a Sentence
–noun
1. a succession of images, thoughts, or emotions passing through the mind during sleep.
2. the sleeping state in which this occurs.
3. an object seen in a dream.
4. an involuntary vision occurring to a person when awake.
5. a vision voluntarily indulged in while awake; daydream; reverie.
6. an aspiration; goal; aim: A trip to Europe is his dream.
7. a wild or vain fancy.
8. something of an unreal beauty, charm, or excellence.

–verb (used without object) 9. to have a dream.
10. to indulge in daydreams or reveries: He dreamed about vacation plans when he should have been working.
11. to think or conceive of something in a very remote way (usually fol. by of): I wouldn't dream of asking them.

–verb (used with object) 12. to see or imagine in sleep or in a vision.
13. to imagine as if in a dream; fancy; suppose.
14. to pass or spend (time) in dreaming (often fol. by away): to dream away the afternoon.

–adjective 15. most desirable; ideal: a dream vacation.

—Verb phrase
16. dream up, to form in the imagination; devise: They dreamed up the most impossible plan.

-------------------------------------------------------------

Based on these definitions, I do not see how it is possible for anyone to steal a dream. This dream stealing verbiage is just more upline propaganda designed to get Amway IBOs to shut off their critical thinking skills and to blindly commit themselves to buying more standing orders and function tickets, whose profit goes into the pockets of your beloved upline leaders.

I believe #6 is the most appropriate definition for an IBO. A long term goal. But if an IBO's long term goal is retirement and riches, they should analyze their involvement in the Amway business and determine if that is the appropriate vehicle to achieve their goals. For the vast majority of people, this is not the appropriate vehicle and facts confirm this. It's a matter of whether or not an IBO was told to ignore the facts by his/her upline.

Seriously folks, is this the kind of teaching and advice that you should be paying for?  Let alone actually considering this advice as sound or even serious.  Uplines make up anything to get you to stay in the business and to keep you motivated to buy tools and attend functions.  That is their bottom line but they sell it to you as if it is your dreams.   Sad.

Wednesday, April 26, 2023

IBOs Who Do Nothing?

 I see and hear this quite frequently, that most IBOs do nothing and quit. Quite often, it's some Amway apologist using this as a defense as to why the average earnings of an IBO is so low. Even if many IBOs "do nothing", they are still registered Amway IBOs, and therefore count if you are measuring an "average". What Amway apologists like to do it exclude those who achieve nothing, but at the same time, count the high achievers in the average, thus giving a false impression of what the earnings are for a rank-and-file IBO. A better way in my opinion, would be to exclude the lowest and highest earners. That will give a more accurate idea of what someone can expect to earn in Amway.

But let's look at the term "do nothing". I cannot accept that most people do absolutely nothing. They were open enough to talk to someone about a business. They were motivated enough to be looking for something. They were motivated enough to (likely) attend a presentation and they were motivated enough to spend money on a starter kit. I would add that in many cases, groups such as BWW, WWDB or Network 21 for example, will add on some charges to that starter kit, which may include some tools or possibly a ticket to the next function. If you actually visit the Amway website, you will see that actual enrollment costs less than $100. With the motivational groups tacking on fees, startup kits might cost several hundreds of dollars. That being the case, I can't accept that people did all of the above, paid to join and then let the starter kit sit there collecting dust.

It would be my educated theory that many people "achieve nothing". but they don't "do nothing". A more likely scenario in my opinion, is that people sign up, and they do contact others, try to sell the business or some products, but because of past IBO behavior, they encounter the term scam or pyramid, and an extremely low rate of people open to joining or seeing the Amway plan. Knowing that you cant "go diamond" without sponsoring, many or possibly most IBOs try to get others to join. Because a lot of Amway products are not competitively priced and because of previous reputation issues, it is a very tough sell for new people. In my opinion, this is why Amway is growing faster in foreign countries, because IBOs have not yet damaged the name of Amway. Keeping this is mind, it is my guess that the real life average income is about $100 a month, not the $200+ that Amway recently reported, as they conveniently excluded over 50% of the IBO sales force.

If people are saying that all these folks "did nothing", ask them how they could possibly know if someone "did nothing". The answer is that they don't know. In my time as an IBO, I saw people come and go, some doing little, some doing a lot, but I never saw a single person sign up and not even open the starter kit or at least try to prospect and/or sell. I believe the Amway system is simply flawed and the low achievement levels of IBOs in general is a product of that flawed system. You're welcome to try and prove me wrong (but you can't).

Tuesday, April 25, 2023

Business Equity In Amway?

 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.  How can you build a business empire when most people do little or nothing and quit and most people never renew their Amway business after a year?

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....

Monday, April 24, 2023

Everyone Starts At Zero?

 One of the many bogus things my upline taught us was that the Amway opportunity was fair. That it was a completely level playing field. On the surface, that sounds right because "everyone starts at zero". While everyone does start at zero, the compensation plan is unfair to those who "do the work" and in my opinion, should be revamped so lower level IBOs make more money. It would probably help with IBO retention and maybe, some higher-level leaders wouldn't have to work so hard to keep replacing people who quit. 

If you are a new IBO, then you might not be really familiar with the Amway compensation plan. Amway pays out about 30+ percent of their gross as bonuses. Thus if you move 100 PV in goods, or about $300 in sales, then Amway pays out about $100 in bonuses. You as a new 100 PV IBO, would receive about $10 and your uplines, some of whom don't even know you exist, will split up the remaining $90 in bonuses. It truly is not a case of doing the work and getting paid. You are doing the work so upline gets paid. To add insult to injury, upline wants you to purchase materials that tries to convince you that this is a good deal. 

And something very significant to think about. In what other sales profession are you compensated so low (3%)? I can only think of real estate, but in real estate, your sales are likely in the hundreds of thousands of dollars. In just about any other sales related profession, you get a much higher cut than 3%. Yes, your bonus or commission can be higher if you move more volume, but then you are likely receiving more money because you are now exploiting people doing 100 PV who get only $10 back. 

Even after you consider the unfair compensation, you must factor in the cost of tools. Most uplines promote tools (cds, voicemail, functions) as vital to an IBO's success. Some uplines push the tools harder than others. But the tools purchases will often be the primary cause of IBO financial losses because the cost of tools will normally exceed an IBO's bonus. It is very common in the US for monthly tool purchases to exceed $200 a month on average, and very very few IBOs will ever reach a high enough level in the Amway compensation plan to earn enough just to break even. Also, the tools apparently do not work. There is no unbiased evidence to suggest that tools have any causal relationship to IBO success. 

With Amway's spotty reputation and the unfair compensation plan, IBO retention is spotty. Many IBOs sign up and do little or nothing, and many IBOs don't even last a full year before they quit. What happens is IBOs begin to figure out that recruiting downline is next to impossible and therefore, generating more volume is nearly impossible, even for individuals with skills. If you are a new IBO or a prospect, I encourage you to sit down and really look at the math and factor in the cost of tools. There are many ways to earn a dollar, I just don't feel that Amway is an efficient way to do that.

Ashamed Of Amway?

 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 too 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.   Even as an IBO, I saw people storm out of meetings when the name "Amway" was finally revealed.

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.   Oddly enough, covid 19, where people did a lot of online shopping, etc, did not appear to boost Amway's sales like it did for Amazon and other online retailers.  Why?

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?

Saturday, April 22, 2023

Getting Rich In Amway?

 One thing many Amway IBOs will talk about is how they were told that they would have to work hard and that they would not get rich quick in the Amway business. That Amway was not a get rich quick scheme. I do believe this, but what many Amway IBOs and Amway enthusiasts will not mention is that somewhere in the plan or when they were recruited, they were either directly told or implied that they would eventually "get rich" by joining Amway, whether it was "quick" or not. Some IBOs are told that Amway is "get rich slow", which is also a lie because the vast majority of IBOs make nothing or lose money. Those numbers can be verified by looking at Amway's income disclosures.

If people were told that they would not get rich/wealthy and that they would have to work hard and that they would have to overcome the name reputation, how many people would join? As evidence to prove my point, many IBOs and former IBOs know about a major function occurring around this time of the year called "Winter Conference" or "Dream Night". A handful of diamonds would host a dinner and they would show slideshows of extravagant wealth. Since in my days, IBOs were told there was NO PROFIT IN TOOLS, it was implied that all the luxurious trappings were a result of Amway income.

The slide show was shown while the song "I wanna be rich" was playing in the background. There were pictures of jet skis, yachts, boats, jets, fancy cars, golf courses and designer suits and mansions. The audience was told that diamonds paid for everything in cash. The diamonds would stand on stage and tell the audience that they will work 24/7 but it was so worth it to go diamond. That you could catch up on sleep when you are a diamond. That the IBOs in the audience needed to hurry up and join them so they would have more playmates.

Looking back, it was a nice function. It got people to dream of having all of this material wealth. Sadly, I don't think a single one of the audience I was in ever got close to achieving that kind of success. In fact, the LOS I was in, WWDB, didn't have many new diamonds since I left Amway and in fact I think some diamonds have disappeared! Maybe they became negative losers?

Yes, when you are prospected in Amway, the speaker may tell you that Amway is not get rich quick.

What they don't tell you is that you probably won't become rich at all. They also don't tell you that you are more likely to lose money than to make a cent of profit.

Friday, April 21, 2023

Success Speaks For Itself?

 I heard a great comment from a commentator on a related Amway blog. Basically, he said if IBOs were so successful, people would just naturally be attracted. And that's true! Where I live, the local electric company is an attractive place to work with a good salary and benefits package. When there's a handful of openings, you might get as many as 6,000 people applying for these positions. When the federal government hires for the local post office, you get thousands of applicants for a handful of jobs as well.

But Amway IBOs have to justify their positions. The common ones are how Amway products are concentrated, or they have magical ingredients in their vitamins. It is my position that if these products were so good and the opportunity actually produced successful IBOs, there would be no need to be deceptive about the products or opportunity. The products could easily me marketed. In fact, customers would be seeking IBOs to find the products, and there would be lines of people waiting to see the opportunity. But that isn't the case. Clearly, Amway IBOs use some degree of deception usually called the curiosity approach or outright lies.

Instead, IBOs themselves are the primary consumers of Amway products. Many IBOs are deceptive when inviting people to see the Amway plan. Some prospects are outright lied to when recruited for the Amway opportunity. The curiosity approach is still used by many, because mentioning "Amway" is more likely to get you funny looks than interest. If what I am writing is not true, why do IBOs need to deceive people? Why don't some IBOs open their books and display the financial success they claim to have? Why so secretive? Why aren't there hoards of new diamonds and emeralds each month? Instead, you mainly hear of the Amway growth in foreign countries. Most likely because the Amway name and reputation has not yet been soiled as it has in the US and Canada.

In the US, I see primarily the same old diamonds who were in control of the functions and systems from more than 20 years ago. In fact, factoring in diamonds who quit or dropped out, I believe there are fewer diamonds now than when I was an IBO in the 1990s. Some of these diamonds also had some apparent financial difficulties. The opportunity is far from how it's promoted. Success speaks louder than words, and where North American Amway success is concerned, the silence is deafening!

Thursday, April 20, 2023

If You Criticize Amway, What Else Can I Do?

 One of the really humorous things that Amway IBOs often bring up is that someone who sees Amway in a critical eye should bring up viable alternatives. I mean if someone prevents you from falling over a cliff, they should have warned you and given you alternatives, right? If I recognized you getting were conned by a conman, I should find viable financial investments for you before warning you of the potential scam you are about to walk into, right? It sounds completely ridiculous, but Amway IBOs have actually made those comments on this blog and some other Amway related websites.

Well, let's explore a few of these alternatives anyway just for fun. And for the record, I am not advocating or encouraging you to do anything.   I'm merely making a few suggestions.  The planning, execution and due diligence is your own responsibility. 

How about you stay home and do nothing? For most IBOs, you would be better off financially than committing your time and resources into Amway's products and their ineffective training materials and functions. If you are really dedicated to tools, sending your upline a check for $50 monthly and not buying Amway goods or related training materials would make you better off. Isn't it ironic that
doing nothing makes you better off than participating in Amway and related training?

A second job where you actually receive a paycheck is a viable alternative. While there's no hype and hopes of getting rich in 2-5 years, you can do much for your future by saving a portion of that paycheck each month. If you are young, this especially applies to you. But anyone can help their future by saving and investing. Even someone who panhandles is more likely to have more net cash than most Amway IBOs since most Amway IBOs make nothing or lose money.

Sure, some people do make money in Amway and some make a lot of money. The problem is they likely make most of their money by exploiting their downlines and those hopeful downlines basically have no hope. In other words, you profit by selling false hope and false dreams. Basically, you can gain wealth in Amway by being a conman. Can you live with yourself in order to profit at any cost? What the upline does is extract $100 or a few hundred dollars a month from a lot of people.

I haven't even gone into the amount of time lost chasing prospects and attending functions. Your time might be the most valuable commodity that is lost chasing the 2-5 year dream. Ask yourself this question. Where are these diamonds who did the 2-5 year plan living in luxury and doing nothing? I have asked this over the years numerous times and not a single Amway defender can name someone and provide a shred of evidence that it's true.

Wednesday, April 19, 2023

A House Of Cards?

 When I was an IBO, I was in WWDB. I was told that they were the best LOS, the fastest growing, with the best leaders. We were told to look at the fruit on the tree, that surely, that was proof that WWDB was the best. At the time I believed it all. Afterall, my upline diamond was one of the fastest to achieve that level and things were looking up. I had heard of recent functions where there were over 50,000 in attendance at the Kingdome in Seattle (at that time). We were told that nobody made a cent of profit from the functions and other tools. That upline used proceeds to make functions better and cheaper for IBOs. It all sounded like a great organization, and I was certainly going to be rich if I only followed the system and their great leaders.

Well, after a year, I quit. Not because I could not build the business, but because my upline became overbearing, demanding that I submit to him, giving me bad advice and he was also unable to answer when I asked why I achieved the level of 4000 with the proper parameters but was not making any net profit. There was no incentive to spend all my time and money building a business for no profit and I quit. My upline's advice of dumping my fiancée' to focus on Amway also contributed to my decision to quit. After I quit Amway, my life got back to normal until one day I happened to stumble across a website called Quixtar blog. It was then that I realized how many lies I was fed and how badly our uplines had taken advantage of downline IBOs.

It seems that the WWDB house of cards started tumbling with a couple of WWDB diamonds
having homes foreclosed. We later saw a blog post indicating that a WWDB triple diamond was in bankruptcy proceedings. That was followed by Ron Puryear's river house going up for sale, followed by the listings of other WWDB diamonds who were selling their homes. It is true that they may be selling the homes to liquidate some cash or to downsize, but in a bad housing market and if the homes were paid for in cash as many a diamond claims, then it seems like an odd time to sell. Of course, it could also be that Amway in the US is shrinking and with less sales and fewer IBOs, there is less tools income and Amway bonuses, thus perhaps some of these diamonds simply cannot afford these homes any longer? Toss in a prominent WWDB diamond apparently divorcing and rumors of a couple of WWDB diamonds moving to form their own systems and you can see gaping holes in the WWDB system.

It has been my contention that many diamonds are possibly living in heavy debt because even with a decent income, their excessive lifestyles as portrayed in functions, simply cannot be sustained unless they have other major sources of income. In fact, since a large portion of a diamond's income is from annual bonuses, a diamond's monthly income may be relatively small. In any case, it appears to me, that WWDB is on shaky ground and some of their hypocrisy is being exposed. They apparently built a house of cards and now it may be falling apart.

Tuesday, April 18, 2023

The Impossible Dream?

 Every year, tens of millions of kids across the US have dreams of playing sports. Some dream of playing professionally, some dream of playing at the collegiate level, some may have dreams of dazzling their high school peers. And this can apply to just about any sport, be it baseball, football, hockey, basketball, golf or whatever endeavor you can think of. As you progress to each of the next higher levels, the number of participants decrease. There are only so many professional teams, and so many college teams, while there are scores of high school teams all across the country. As each level gets higher, it is likely that better physical attributes and greater skills are needed in order to move on. 

I've heard some Amway supporters make comparisons between the Amway opportunity and how the higher levels are like the professionals and the rank and file are like the high schoolers. While I agree that there's only limited space at the higher levels, I think it's extremely important to note why the masses do not achieve the highest levels. In sports, you would need to have the motivation, the physical gifts, as well as the skills to achieve and excel at the highest level. Thus, people who are small in stature likely won't be candidates for the NFL even with a lot of motivation. Someone under 6' tall might have great difficulty in getting a job in the NBA. Of course, there are always exceptions, but those exceptions are made up by perhaps, incredible "other" skills or leadership. Some athletes have a knack for being in the right place at the right time, or an intangible.  

So what does this have to do with Amway? The connection is the massive amounts of Amway IBOs who never achieve even the break-even point. They may come into the program with dreams of financial freedom, or making enough to have a stay home wife, etc. Why do so few achieve even the lowest levels? In my opinion, the Amway business has too many barriers that prevent IBOs from succeeding. These barriers make it nearly impossible for anyone to reach the higher levels. These barriers include but are not limited to high prices that make many products a tough sell. Then you have the optional but vital training and functions that normally drain whatever profit the lower level IBOs make. Even someone at 2500 or 4000 PV will net a loss if they need to travel by air to functions. You can also factor in some of the zany things previous IBOs have done such as tricking people into attending meetings, or not being accountable to downline, or by messing with your downline's money (bouncing checks).  

In the end, the masses of IBOs just do not possess the ability to overcome these barriers that can stop the charge of a bull elephant. It is why so many IBOs try hard and achieve nothing. While much effort may be expended, it looks as if these folks did nothing and quit. The reality is that most people who sign up were highly motivated but more likely found an impossible barrier and decided to do something else. I know of many former IBOs who went onto succeed in life after Amway. Many do not complain or voice complaints because they were involved in Amway with family and friends.  

So in Amway and in pro sports, there are masses who want to achieve their dreams. In both cases, a tiny percentage might achieve the top levels. The difference is that athletes know that their chances are small. IBOs are often misled into thinking that everyone can achieve diamond and residual income, which is a myth. Also in pro sports, there is no scam where people have a proven training system that will ensure success if you work hard. In pro sports, it is proven that the elite make millions. Whereas Amway diamonds seem to shroud their success in secrecy, showing pictures of mansions to show off success. Also, athletes may not make the pros, but may have benefited by getting a free college education. There aren't any stories of success in Amway for those who don't "make it", as far as I know. Are you chasing an impossible dream?

Monday, April 17, 2023

The Have Nots?

 Anyone who's been prospected or had an experience with Amway most likely attended a recruitment meeting at a hotel or convention center, or maybe attended a function in a large venue. There might be several hundred to several thousands and if it's a big function, you may have been sitting with tens of thousands of other Amway hopefuls. My former sponsor told me about a function back in the early 1990's when he attended a function in the (then) Seattle King Dome, which had maybe 40,000 IBOs in attendance. I mean, it must be somewhat exciting to be sitting in a venue with that many people, especially when they all seem fired up about the function. After all, everyone there is going to "go diamond" right?

What unsuspecting prospects and Amway IBOs do not see is that the people on stage are the haves and the people in the audience are the have nots. It's like attending a Bruno Mars concert except that Bruno doesn't lie to the audience that you will someday be with him on the stage making a financial fortune by doing what he does. Very few people are deluded enough to think they will someday be the next Bruno Mars and be on stage in front of thousands of people performing. They pay their entrance fee and enjoy the show. Basically, the same thins is true of an Amway function, except that the diamonds lie and proclaim that "anyone can do it", and that people in the audience will join them on stage.

Sure, once in a while, somebody might break the overwhelming odds and challenges to go diamond, but since I left Amway and WWDB, more diamonds have left ot died than the number of new diamonds (in North America). Seems the same old diamonds are still there, and apparently teaching the same old tired principles of never quit and dedication to the tool system. And why not? The haves make profits from the tools and the have nots pay for the tools. In a way, Amway is like the real world of haves and have nots, but on Amway and other MLM, the have nots are lied to as if anybody can join the elite and join them on stage at the functions. In case you are an information seeker here, the botto line is that people who sell function tickets make nice profits and people who buy function tickets will make no money, or lose money, most likely because of the expense of tools and function tickets.

In debating a pro Amway/WWDB dude recently, he claims that his expenses are low, which is entirely incongruent with WWDB teaching. He also claims that his upline Diamond can afford to rent a place for $20,000 a month while he remodels his multi million dollar mansion. Is it true? I doubt it, but even if it were true, I doubt that anyone is generating $20k per month selling LOC or vitamins. But selling function tickets or cd or voicemail subscriptions could generate tens of thousands of dollars per month income. For this reason, upline will show you copies of their bonus checks, but will never show anyone their financials. IBOs and prospects who saw that upline rakes in their fortune from tools, might be hesitant to enthusiastically purchase those tools.

Bottom line is if you sell the tools, you are likely successful and are with the "haves". If you buy the tools, you are likely unsuccessful in Amway. You are a have not. The two rarely mingle and you're fooling yourself if you think they do.

Sunday, April 16, 2023

Are The Diamonds Fake?

 One of the things I distinctly remember being taught at a function was to "fake it till you make it". This was to give the impression of being successful. It was said that you are going to be successful because of Amway so you may as well act the part. I believe this is taught today as well. Amway IBOs like to make an impression on prospects so the want to appear successful. It is also a part of why IBOs wear suits. They want everyone to be under the impression that they are in a multi-million dollar business. Guess what? WalMart is a multi-billion dollar business but their employees don't wear suits!

What I find really interesting about this is that I honestly believe the biggest fakers are probably the diamonds. In the past several months, all over the country, there were functions called "Dream Night". A function with a sit-down dinner where the diamonds and other Amway heroes show off slide shows of mansions, jets sports cars, golf club memberships, fabulous vacations, and shopping sprees. I honestly believe that many of the diamonds are the biggest fakers out there. A diamond income, which seems big, and supplemented with tools income, most likely cannot sustain the lifestyles portrayed in these functions. Simple math bears it out.

A diamond income (non Q12), even with tool income might be $250 or $300K. While that may seem huge compared to a working stiff who earns $40K or $50K per year, keep in mind that a diamond business has many expenses. How much do you think it would cost a (diamond) family of four (4) to travel to say 5 or 6 functions, first class? Four people flying first class say from Hawaii to California would cost several thousands of dollars per person, round trip. A diamond who speaks at functions would make several of these flights each year. Thus, this particular business expense (if the diamond flies first class) would eat up a significant portion of a diamond's income. Keep in mind that the $250 or $300K I spoke about is before taxes and business expenses.

Then, much of that diamond income goes to taxes and business expenses. I challenge IBOs to sit down and figure this out. After taxes, medical insurance and business expenses are taken into consideration, I would guess that a diamond lives a very ordinary and middle-class lifestyle. Amway advocates will argue that this is without a 9-5 job, but an Amway business needs constant attention as IBOs up and quit every day. Some who do sign up never do a thing. Replacing IBOs is a never-ending task. It is why you do not see or hear of any diamonds who "walked away" to collect residual income forever and ever.

Here's another take on fake it till you make it. Isn't this simply lying and hoping you will one day succeed?

But Amway Is Fair?

 One of the major reasons why I think Amway is not such a good opportunity is because of the unfair multi-tiered compensation plan. I have heard that Amway pays out about 30-33% to their IBOs, but I find it unfair in that you get rewarded for sponsoring people who move volume more than you do for actually selling products. I believe this is why so many IBOs are desperately trying to sponsor people and in some cases, deception and trickery is used in recruiting, which contributes to Amway's already bad reputation.

This multi-tiered compensation plan also rewards a few people at the expense of the masses. If an IBO works really hard and sold 100 PV worth of goods, that IBO would get $9 or $10 in a bonus from Amway and layers of upline would split up about $90. I fail to see how that is fair, especially when IBOs seemingly say "do the work and get paid". In this case, you do the work and your uplines get paid.

I think Amway would be more efficient by giving all IBO's 20-25% back as a bonus, with the remaining 8-13% in bonus (33 - 20 or 25) going to certain levels of achievers. I believe that this would truly allow someone to change their buying habits and gain some value. It would also be good for retention of IBOs because a 100 PV would get you a monthly bonus of about $60. If you sold 100 PV to customers, you would get the retail profit plus the bonus. I believe there would be less of an emphasis on sponsoring and more of an emphasis on selling. It would put less pressure on IBO's to recruit and sponsor, and I believe that Amway's reputation could be repaired in this manner. While you would have less emphasis on "going diamond", those who did achieve it could still get handsome bonuses.

I believe implementation of this type of compensation would also eliminate the endless need for cds and seminars. Sure, product expos and some teaching on salesmanship might help, but I believe that compensating the "majority" of IBOs would keep them interested in doing business and would lessen the need for tools. I believe this is a win-win for the majority of those in the business.

I'm sure some Amway apologists will find fault in my line of reasoning, but I believe this is a long-term sustainable solution for Amway. Comments are welcome.

Friday, April 14, 2023

The Struggle Is Real?

 There's been much debate recently over the issue of IBOs selling products. Now of course in the IBO world, there are going to be some IBOs who are exceptional at selling products and possibly in foreign countries where Amway has not spoiled their reputation as it apparently has in North America, it might be possible to sell some products. But the experience of a typical IBO probably cannot be one where products flow to customers regularly. Now I do not wish to debate the merits of whether or not downline are considered customers as that is an endless and pointless debate because the bottom line would be that uplines are making their income on the backs of their downline, thus confirming the appearance of a product pyramid. Aside from downline, it would appear that the remaining customers are mostly sympathetic family and friends who buy a few token products.

But why do rank and file IBOs struggle to sell Amway products? Surely Amway has some decent and some good products. But in North America, Amway's goods are generic in nature but sell at premium prices. So unless you are convinced that their quality is that great for the price, the average Joe is simply going to buy a similar product at WalMart or a Costco. Also, when you must justify and explain to potential customers that you actually provide a better value due to concentration and/or cost per use, it not only becomes labor intensive, but confusing for the average consumer. Add in the past reputation of the Amway name being associated with a scam or a pyramid and you have an extremely tough sell.

Partner stores are often used by IBOs to bring name credibility, but I wonder how many of these products are actually sold to customers. I suspect that very few products are sold because the price is not that competitive and because many consumers, like myself prefer to touch and feel certain products before making a decision to buy. Even with a money back guarantee, customers don't want to be bothered with returning something via the mail. Also, the term partner store seems odd because Amway IBOs sell partner store goods, but "partner" stores don't sell Amway products. The relationship is not a two way street, in other words.

Also, while Amway recently started to market their opportunity and goods with national advertising, I believe the advertising is more of a retention issue. IBOs can say "see, we're on TV, we must be credible". I believe it may be too late in North America. In the past. IBOs would say they had greater bonuses because Amway saved money on advertising. Thus IBOs engaged in the most inefficient manner of moving products. They did it person to person and in the past, door to door. The reason why super bowl commercials are so expensive is because they can reach tens or hundreds of millions of people worldwide. But basically, Amway IBOs to sell the products and the opportunity, must do it one person at a time, and they must also overcome the many negative opinions that North Americans have about Amway. Amway sales have been tanking since 2013. Amway revenues have gone from 11.8 billion at its peak in 2013 and dropped each year with 8.6 billion in 2017 being the most recent numbers.

But it is for these reasons that IBOs probably cannot move many products except to some family and friends. In what REAL business can you make a sustainable living, much less fabulous wealth by selling some goods to family and friends? I can't think of any, and you are seriously mislead if you think you can do this with Amway products and earn untold wealth and riches.

Thursday, April 13, 2023

Real Information For Prospects?

 One thing that I was unaware of as an IBO was that our Amway uplines were profiting from our tools 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. Nothing was further from the truth and in fact, significant incomes are made from the same of Amway tools and functions, with some diamonds making more from tools and functions than from Amway!

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 they downplayed the magnitude of the tools 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 of 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.

Wednesday, April 12, 2023

CORE: The Key To Amway Success?

 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

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.

Tuesday, April 11, 2023

The Amway Business Creates Wealth?

 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 Amway business can create wealth, if you are one of the Amway owners, or are able to sell tools and functions to loyal downlines who pay for these materials with their job income.

Monday, April 10, 2023

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 barnd 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.

Sunday, April 9, 2023

When You Have A Dream?

 One of the bat sh*t crazy things that our upline taught the group was that the facts don't matter when you have a dream. There is evidence that this is still taught today and in particular, I have heard that from Amway IBOs who claim to associate with WWDB. IBOs are taught to ignore facts because the facts make their Amway businesses look like a joke. Spend $300 a month on products to gain a $10 rebate when you could have bought the same or similar products at WalMart for a fraction of the cost. Then many IBOs spend another $200 or more on tools and functions so they can be taught to ignore facts of that all of this is somehow a great deal.  

Any real business owner would never ignore facts. A real business owner makes decisions based on facts. IBOs are being duped into making business decisions on emotions and hype. The Amway opportunity already is already saturated with handicaps and challenges, particularly in the US and Canada, where the reputations and previous antics of fellow IBOs has so stained Amway's name that it appears to be negatively affecting sales and preventing any meaningful growth. Despite what Amway apologists claim, Amway is very likely shrinking in the US, and will continue to do so unless improvements and corrections are made, in my opinion. It's also possible that it is too late to right the ship at this point.

It is also why many IBOs talk about how Amway saves marriages, or Amway made them nicer people. Uplines will teach this because it takes a business owner's focus away from their bottom line, the profit or loss. Or IBOs are taught that a loss just means they are investing in their business, despite being tols upfront that there is little or no investment needed and that a profit can be turned quickly in Amway. These uplines have gone on for years with no accountability placed upon them by either Amway or their downlines. Any "incidents" are simply ignored or history revised by uplines.

There is one blog on the internet, where a WWDB IBO is writing about buying homes in cash, and Amway IBOs having a 2% divorce rate compared to more than 50% in the rest of the world, yet you have Amway defenders claiming this isn't being taught, when clearly it is. Cover it up all you want, the evidence is right there but these folks aren't interested in the facts.

Why are Amway IBOs ignoring facts? A better question is why Amway IBOs would listen to a "mentor" who teaches them to ignore facts?

Friday, April 7, 2023

My Job Is A Pyramid?

 One of the things I take issue with is how Amway uplines will create an us versus them mentality in the 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.

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.

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 nite 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.

Thursday, April 6, 2023

Upline Doesn't Succeed Unless You Do?

 One of the things my upline leaders used to always talk about was how they wanted everyone to succeed.  That they don't succeed unless you succeed.  Looking back, I believe they were lying and simply wanted the faithful downline to keep spending money on tools whether they succeeded or not. Now I am not claiming that every single upline leader does this, but primarily the ones who run "systems", such as WWDB, N21, BWW, LTD and some others.  Fact of the matter is that they succeed whether you wind up homeless or not.  Once you buy products and/or tools and functions, they profit at your expenses.  

When I stopped and really thought about it carefully, pretty much every piece of advice I received, I had to pay for. Voicemails, standing orders, functions, open meetings. I know these are supposedly optional, but in reality, they are a defacto requirement. Anyone with a "dream" is going to buy the tools because the leaders will tell you that you cannot succeed without tools. Ironically, the same leaders will blame individuals and cite personal responsibility for the failure of downline IBOs, even the ones who did everything they were told or advised to do.

The leaders are edified and touted as having great business and financial acumen, thus not following their advice would seem foolish. Yet Amway defenders will try to claim that IBOs should discern the good and the bad and operate independently. It's a redundancy that many people do not see. Sure, a downline should not jump off a cliff because upline said they would pad their fall with a pile of cash, but many IBOs put in an earnest effort in Amway, only to fail because of the flaws in the business model of Amway and reputation issues that Amway has. These IBOs are told they were lazy or quit too soon, or did not try hard enough. Yet the very few who manage to break thru are edified along with the system while ignoring the multitudes who do not make it.

The bottom line for IBOs and prospects to know, is that I believe most IBO leaders do not know you or care about you and your success. They are more interested in selling you websites, voicemail, standing orders and functions. They know that people will come and go, and they are perfectly happy replacing quitters with new people, as long as the system tools keep flowing. I believe some of the US diamonds are now hurting as Amway is not growing rapidly in the US. I read recently of Amway downsizing some of their operations, seemingly confirming that US sales are down. Also, to note, Upline leaders would have to share tool profits with new emeralds and diamonds, which is why I believe they do not want new success.

I believe that Amway, other MLM businesses, or real estate gurus, or financial gurus with paid informercials all have very limited or rare success with their financial systems. Infomercials usually have a disclaimer that success is a "UNIQUE" experience. Amway is no different. But I believe in all of these cases, more money is generated in selling the system than by actually running the system. If not, success stories would be rampant, and people would line up to sign up instead of having to be deceived into even hearing the pitch.

Wednesday, April 5, 2023

The Evolution Of Upline Teaching?

 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.

Tuesday, April 4, 2023

Diamond Retirees?

 One of the things many Amway IBOs hope for is the dream of receiving income from having built a big Amway business, and then "walking away" from the business and retiring young while enjoying a life of luxury. To "prove" that this is possible, some diamonds may show off pictures of cars, mansions, and other luxuries, all allegedly attained by having built a big Amway business. And sadly, many young people get trapped into believing that they can all achieve this a with 2+5 years of work. It's basically a myth and a get rich quick scheme.

But where are these mysterious people who built sizable Amway businesses and simply "walked away" while the money kept rolling in? There are several issues to think about for people who believe that people "walked away" from an Amway business and continue to collect a significant income.

First of all, if someone truly could walk away and live in luxury, why are there countless stories of diamonds, double diamonds and some higher, who quit or resigned from Amway? Why did they not exercise the option of walking away? For certain Amway bonuses, there is a "side volume" requirement. How do "retired" IBOs continue to meet this requirement? None of their downline ever quits despite the fact that an overwhelming number of IBOs quit each year? Who helps these downline while their upline is walking the beaches of the world and how can anyone maintain a certain volume after walking away? Most IBOs find their business fall apart immediately after they stop adding downline. Also, how do you meet the minimum sales/customer PV if you are sitting on the beaches drinking Mai Tais?

I believe the answer is simple. There aren't people walking the beaches of the world while Amway cash rolls in by the truckload. Sure, some people might still be earning some income by having repeat customers or having some downline who remain active when you leave the business, but I seriously doubt that there are people jet setting and traveling to the beaches of the world with no financial worries simply by working 2-5 years as often suggested in recruitment or open meetings. If these people exist, why can't anyone name even a single one of them? Why do crown ambassadors keep working busy schedules? Why are diamonds always scrambling from function to function if they could truly walk away and enjoy life with income pouring in from Amway? Why are there stories of diamonds having homes foreclosed and a prominent triple diamond involved in bankruptcy proceedings a number of years back?

I think the answer is quite obvious. It's because someone walking away from an Amway business while income pours in is like chasing the end of a rainbow. You can see it but you can never grab it. If not, where are all of these mysterious retired Amway people?

Sunday, April 2, 2023

Joecool Article Published On Forbes?

 One thing I recall one of our upline diamonds saying was that Forbes had credibility because they had published something that was somewhat positive about Amway, although this was back in the 1990's. This article is a re-print but one that I believe is very relevant and worthwhile because it's about taxes (and we are in tax season) and because the article in Forbes directly quotes an article written by yours truly. I have provided a link and the quoted portion of my blog article:


https://www.forbes.com/sites/peterjreilly/2016/06/25/tax-court-denies-amway-losses-due-to-lack-of-profit-motive/#51bdaa493ab6

The article was written by Peter Reilly who quoted my article. It's about how the tax courts basically hose Amway IBOs who try to use functions and other excessive tools as tax write off, which are promoted by some upline. Mr. Reilly states that the tax courts seems to align with what critics (such as JoeCool) says:

""Tax Court Seems To Align With The Critics""

What I found most intriguing about this decision, is that way that it mirrors critiques of the Amway experience, which seem to have their own section of the blogosphere. For example Joecool of Amway - The Dream Or The Scheme? recently wrote in a post called Amway Success?""

Submission to upline was one of the things we were told. Our group was told that upline would never purposely lead us astray so we should trust them and never try anything without checking upline.

Our group was taught to reduce debt, but ironically, upline said it was okay to go deeper in debt if it was to attend a function or to buy more cds.

Anytime we asked about how much income uplines may have been earning, we were either told it's none of our business or shown a photocopy of a 10 year old bonus check that someone upline may have received. Our proof that the business worked was upline showing off pictures of sports cars and mansions.

Losing money is success. Many times, our group was told that losing money was a sign of success. It was success because we were investing in our futures. That the business really is not about money but about friendships. I suppose upline taught this because everyone was losing money so it was nice to hear that success was around the corner, and that we were all nicer people and on our way to success if we just attended more functions and bought more standing orders.

JoeCool is on Forbes. I guess that makes me legit, according to the Amway uplines.  And what I had posted, seems to be a similar experience for many who comment and read this blog.  Seems not much has changed about Amway?

Saturday, April 1, 2023

A Life Changing Business?

 One of the things that was heavily promoted when I was an Amway IBO, and I believe is still promoted, is the control of time and money. I recall hearing that "broke" people often have lots of time, but can't do much because of a lack of money, or how a very hardworking man might have money but a lack of time as he is working 80 hours per week. So why not join Amway, work hard for 2-5 years and have all the time and money you need for life?

Well, it sounds good on the surface, but how many people actually do that? I don't know of any IBO who worked the business 2-5 years and walked away from their business to enjoy control of time and money forever. And there are reasons for that. Attrition. Most IBOs who join don't do much and more than half of all IBOs won't even be in business for more than a year. IBOs also need to be active and moving side volume in order to qualify for some of the bonuses. It is why I believe that there aren't any diamonds who left to enjoy their time and money because of passive ongoing Amway income. Diamonds and above must continually work the business or their businesses will fall apart like the waves would erode a sand castle at the beach.

For many IBOs ironically, what they desire most, time and money, is what they have less of because of their involvement in the Amway opportunity. It is because of the way many IBOs are taught by the systems such as WWDB, BWW or N21. Many of these groups will teach a defacto PV requirement of 100 PV which costs about $300 monthly. In some cases, you are getting a small box of goods for the same amount of cash that would have gotten you a cartload of goods at WalMart or Costco. For system IBOs, you are also paying for instruction that basically tells you that this is a great idea and that you should never quit.

So now when your family and friends have backyard barbecues or birthday parties, you are absent because you are securing your financial future. Your kids surely won't mind you missing their baseball games or sending them to the sitters while you attend a function. Your family and friends will be wowed when you retire next year and throw them a party to end all parties. It all seems surreal, and for most, it truly is. There may be $10 or even $50 monthly checks rolling in from Amway but is never covers the cost of your expenses. You can't quit because success might be right around the corner.

Suddenly your sponsor or upline might tell you that the Amway business is not about money. You might be told that you are a nicer person or a better parent (even if you neglect your kids to attend functions), or that the business opportunity has saved your marriage. Which leads to my question. What have you achieved in the Amway business that has given you more control of time and money? Do you have less time and money as a result of your involvement with Amway?

During my involvement with Amway, my life was changed, but not for the better. And it wasn't because of Amway. It was self serving teaching by WWDB leaders designed to suck the life out of IBOs. We were to attend all meetings. All means all. We were to submit to upline. Check your ego at the door. We were to buy extra tapes/cds because you can't listen to the same ones each day. Wives and husbands needed separate standing orders. If downline quit, you don't cancel standing order. It is why I saw crosslines go bankrupt, lose a home to foreclosure and many ended up quitting and with large financial loss.

I hope this message of personal experience helps information seekers.