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.
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.
3 comments:
The Amway compensation plan is a joke among other MLMs. It grossly underpays the low-level IBO in favor of the layers of up-line above him, and this encourages him to recruit new members rather than sell Amway products to the general public.
This results in two things: 1) most Amway products are consumed by the IBOs who buy them to maintain their monthly PV level, and 2) all the propaganda at the various Amway subsystems is directed to frantic, screaming hype designed to keep IBOs from quitting.
Amway is a huge psychological fraud, based on convincing simple persons that they can get rich by signing up other people to get rich.
Even "consuming" is a stretch. How many IBOs have bought stuff they ended up never using because they had to and so they wouldn't get yelled at by Upline? I will be the first to raise my hand. Guilty as charged.
Very true. Many IBOs had basements and garages filled with boxes of Amway stuff that just gathered dust, and that would never be sold or consumed.
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