Critical Mistakes?

 In professional sports, whether it be football, basketball or baseball, there are many close games. In close games, a critical mistake made will likely cost your team the game. A good example of this would be a football team trying score the winning touchdown but they commit a game changing turnover. Or a baseball pitcher slips and throws a fastball up in the zone and it gets hammered for a home run. Or a basketball player shooting fouls shots but missing in the last minute of the game. A critical mistake nearly assures you of failure.

In my opinion one of the most critical mistakes that many IBOs make is to ignore the bottom line when analyzing their Amway businesses. I recall, in my experience, business building IBOs, sadly, taught by their uplines to ignore losses, or to view losses as investments into their businesses, or that money is really not important, because you keep building the business and the "money will be there", which is not true. Some uplines may teach that the business is really about making friends or being a nicer person. All of these things may be nice side benefits of reading personal development books or attending functions, etc., but when running a business, the most important goal should be to turn a profit. The sole purpose of a business should be to sell a product or service for a profit. Period.

For many IBOs, their businesses consist of listening to standing orders, attending functions and meetings, but not focused on selling products and earning a net profit. And for most IBOs, nobody can blame them as upline may give them bad advice and because the Amway business is person to person selling, it is so inefficient that many groups end up teaching IBOs to simply buy their own volume and get others to join the business. For groups who operate primarily in this manner, you are probably running an illegal pyramid business because new and existing IBOs can profit only by continuing to add more downline IBOs in the hope that they too, will buy their own volume and sponsor others.

When you look carefully at the business plan, whether it is 6-4-2, 9-4-2 or some other variation, the majority of these business building IBOs will have low volume and likely to earn only about $10 a month. But to earn that $10 a month, you are likely to have to spend $300 on products, and if you are on standing order, voicemail and functions, then you likely spend anywhere from $150 to $250 monthly (or more) to participate in the teaching system. Thus these IBO's bottom line is a net loss! It is only when you are able to sponsor many downline that your losses will get smaller and you will only profit when you have a sizable downline. That means your bottom line is a loss. And while Amway defenders will argue that Walmart doesn't even give you $10 a month, you can certainly get more products from Walmart for $300 than you can get from Amway for the same price. Walmart will match any advertised price on a product that they and a competitor may carry. Also, Walmart's advertising reaching millions of people, which is much more effective than person to person. While Amway runs some ads now days, they do not directly drive customers to IBOs. The vast majority of IBO business is still to themselves and their downline, and not to non IBO customers.

I challenge IBOs to look objectively at their bottom lines. It is likely a net loss. If it is, ask your upline how long this is expected to last. Set hard goals and if you are doing what is advised by upline and results do not improve, you may have to ask yourself what will change to make your business profitable? Basically, if you aren't adding active downlines and customers regularly, you aren't going anywhere and are likely to be running your business at a loss month after month after month. It won't take long before you realize that you have lost thousands if not tens of thousands of dollars. Uplines often say insanity is doing the same thing over and over and expecting different results.

As a former IBO with a 4000 PV business with eagle parameters, I was not making a net profit. I saw my bottom line and although doing and achieving what my upline advised, there was little to no money. I decided the effort, time and money invested wasn't worth it. Plus my upline started to interfere in my personal life. I saw my bottom line and wasn't satisfied, and I left Amway. I later discovered the lies my upline had fed me to keep me in the business and to keep me buying tools. It is why I started blogging. For now, my bottom line is to get the truth out about the tools scam run by upline. That is Joecool's bottom line.

Amway Or Gambling?

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

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

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

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

You're The Winner?

 One of the things that my Amway upline taught, and I believe is still taught today in various groups is that winners join Amway and losers do not. Or that you were a winner because you were doing something to better your financial future and those who didn't were losers. or broke minded. Of course the upline who said this had no knowledge about those who were not in Amway. Some of them may already have been financially sound or may have been doing something to better their financial future. I'm not sure why these uplines, who promote "positive", had to resort to calling people losers simply because they did not agree that Amway was the greatest thing since sliced bread.

In many games or sporting events, there will be someone or a team that wins the game and someone or a team that loses the game. Losing a game doesn't make you a loser and certainly, a team that wins the game would not say the losing team were losers. Can you imagine a sports team's coach taking the podium after a game and saying his team won because the other team was a bunch or broke minded gutless losers? That would never happen, yet we see that frequently in the Amway/IBO world. The owner of Amway, Rich DeVos had once said in a recorded message that just because people do not agree with you (paraphrased) about Amway, does not make them losers and that IBOs should not call people losers.

In all of this, people's jobs are also criticized. That a job stands for "just over broke" or "jackass of the boss" and other blurbs. Many IBO's goals and dreams consist of ditching their job so they can sleep all day and live a life of luxury. Ironically, it is most IBO's jobs that continue to produce income so they can pay their bills and feed their family. It is also an IBO's job that funds their Amway and training expenses such as product purchases and functions and voicemail, etc. Without having a job, most people could not even join Amway or pay for any tools. Sadly, most IBOs won't make any money in Amway either, and will have to continue to work at their jobs. I do not believe that someone earning an honest living working a job is a loser. Ironically, the folks calling people losers are often not even netting a profit from their Amway business!

Yes, in this business or the sports world, there will be winners and there will be losers. The question is whether you are the one who is allowed to be the judge of who is and who isn't. I would also suggest that IBOs are completely shutting down potential future business by their behavior. What if I went to a store to purchase something but the item was not available on that particular day, so I don't purchase anything and leave. As I leave, the store owner says I am a loser for not buying something there. Will I go back? Very unlikely. If an IBO truly sees themselves as a store owner, all prospects should be seen as potential business, whether future or present. If your upline tells you that people not interested are losers, you should ask him how much cash he's netting from Amway. You might be surprised at the answer!

Who Needs A Job?

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

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

When an IBO finally agrees to register, it is then that the hidden costs are revealed. Many uplines will introduce standing orders and functions and present these tools as vital to IBO success. Most new IBOs don't know better and feel subtle pressure to conform and give it a try. Some upline may loan some tools to downline in the beginning but eventually, the IBO will be encouraged to be a "serious" business owner who should be purchasing their own tools to loan to their downline and the cycle goes on.

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

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

An Amway Business Sustainability?

 One thing that is very clear to me after having researched and blogged about the subject of Amway and the Amway Motivational Organizations (AMOs) is that most Amway businesses are not sustainable. It is why I believe there is such a high dropout rate and why there are so many people who have formed a bad opinion about Amway. Now a real business relies on income from customers. The customers purchase goods and services from a business, and it they like it and/or find value in the goods and services, they become repeat customers and as long as there continues to be value in the goods and services, sales are made.

In the Amway, business, there appears to be a "perceived" value to the goods and services. In many groups (such as BWW or WWDB), the perceived value is that the purchase and use of Amway products will lead to untold wealth and the possibility of early retirement. Sadly, for most IBOs, the reality sets and and the IBOs end up quitting, and more often than not, the products that had great value and price to an IBO, suddenly becomes expensive and irrelevant to non-IBOs. If former IBOs had continued to buy Amway products, the company growth would be significant even with the high attrition rate. It appears that the dreams and aspirations of a new IBO are directly related to their dedication to Amway products.

But why aren't most Amway businesses sustainable? Isn't it simple? Do your 100 PV and get others to do the same? In my opinion, this is what has destroyed the Amway reputation. All too many IBOs in the past have done all kinds of crazy and in some cases, deceitful or unethical things in an attempt to recruit other IBOs. What probably is mentioned, but not a meaningful way is the absolute need for IBOs to get customers, and plenty of them. Even groups that may teach some need to get customers do not advise IBOs focus primarily on customers. They still advise many/most IBOs to sponsor downline. The lack of customers means that the diamond wealth seen on stage at functions comes primarily from IBO purchases of Amway goods and business support materials (standing order, voicemail and functions)

But you may wonder why a diamond appears so successful? It's because a diamond business has many customers. All downline who purchase voicemail, standing orders, books and functions are all customers of the diamonds. The are all generally repeat customers as well. A diamond or higher may have hundreds to even thousands of downlines who purchase support materials (on the diamond's advice). That is why in many cases, a diamond will seem successful, because they have all their downline as customers or potential customers. However, with the apparent illusion of a diamond lifestyle, even that diamond income may not be enough to sustain the "diamond lifestyle". It appears that the downturn of growth in North America may have affected the North American diamonds (bankruptcy, foreclosures, etc).

And if a diamond may not have enough customers to sustain their business and lifestyle, what chance do you have with little or no downline, and little sales to people who are not IBOs? I suspect if you're reading this, you already know the answer.

The Sunken Cost Fallacy?

 One thing that many Amway IBOs likely suffer from is having invested too much into the business to quit. They may have spent weeks, months, or even years working the system hard and they start to realize that the system isn't working out or that the business is just not producing the results that were advertised. You see obvious problems in the business, but you reach a very tough fork in the road.  The problem is that you may have spent weeks, months or years spending your hard earned cash on support materials at a cost of thousands, tens of thousands or more for some IBOs. 

To quit would mean failure, as presented by many uplines. To quit is to be broke for life. To give up hope. Quitters are failures and are labeled as losers by the Amway IBOs. What hopes do you have of retirement and walking the beaches once you quit? Are your dreams of success shattered? This is a very difficult decision that must be dealt with by Amway IBOs, or maybe even those considering the business. Often the "sunken cost fallacy" plays a role, where you feel that you've invested too much to just walk away. although in many cases, making a business decision to stop is the only way to stop the financial losses.

I encourage Amway IBOs and/or prospects to completely take the emotion out of this decision. Do not think about dreams, walking the beaches and early retirement. Do not think about what you upline may or may not have promised you. Stop and think only about your Amway business and the results that it has produced or not produced. Has your business been increasing towards your goal of financial independence or are you seeing losses month after month? Do the math. Are you on target to reach your financial goals or are you headed towards bankruptcy? Don't think only about what happens if you quit. Think about what happens if you continue. Are there prospects of making a profit or is that next major function around the corner and likely to put you deeper in the hole?  Keep in mind that upline's solution to all business related problems is to buy more cds/audios, functions and other materials that haven't led to your early retirement and wealth beyond belief.  Do you really believe that continuing to do the same thing will get you different results?  (Upline's words, not mine)

This post is not about encouraging people to quit or to walk from the business. But certainly, business owners should think like business owners, and they should make an honest and realistic assessment about their continued participation, especially if their bottom line is red ink. If you are not making a profit now, what will change next month to make things better? If you repeat what your upline advised. your results are not going to magically get better. Use facts to make an informed decision.  That's what REAL BUSINESS OWNERS do.  

What Is Typical?

 Many IBOs join Amway thinking they will go diamond, and their lives will be easy after that. No more job, no more boss, and living in the lap of luxury. Afterall, uplines parade themselves on stage showing you slide shows and picture of jets, mansion, sports cars, etc. I suppose they don't aloways tell the audience that the trappings may not actually be owned by them. But still, it draws a great deal of excitement from the audience and the speaker may tell everyone to dream about having the same luxuries - if only you will listen to their advice and follow their system.

Oddly, most IBOs don't do a thing. Many who sign up don't even bother to place an order and most who sign up won't renew their business after one year. But these folks who basically do nothing aren't the victims of deception. These folks who "do nothing" got what they put into the business. It is the IBOs who do put in an effort and purchase what is often promoted as "foolproof" tools that fall victim to the promoters of the system. Many new and ongoing IBOs who are determined to succeed are often told that they "need" the system, that they cannot possibly succeed without tools, just as a carpenter cannot build homes without a hammer and nails. So many IBOs, wanting a better life, will make the investment in the tools, thinking their success is assured with that investment and some elbow grease tossed in.

Sadly, the system does not work. Of course, there are some new diamonds emerging every now and then, but they are the exception and not the rule. My former LOS, WWDB seems to be going backwards. I believe there are fewer diamonds today than when I was active some years ago. Furthermore, some WWDB diamonds were embroiled in home foreclosures, bankruptcy, and some actually walked away from WWDB altogether.

There is ZERO, I repeat, ZERO unbiased evidence that any of these system tools help someone to build an Amway business. Showing a new diamond on stage as evidence of system success proves nothing. The diamonds don't show the hundreds of thousands of people who may have made the same effort only to fail. It's like showing off the winners of the lottery. Sure, there are winners, but the reality and the typical result will be multitudes of losers contributing their money in order for one big winner to emerge. While the Amway business is not a game of chance, the ultimate outcome and results are just like a lottery.

Amway diamonds and promoters like to show people "what is possible", but they neglect to discuss with prospects "what is likely". If you are researching a business opportunity, you should be wanting to know "what is likely" or what are the typical results. If people only search for best case scenario results and ignore what is likely to happen, they are almost assured of failure. For most IBOs, the typical result is to spend $300 a month on products, many of which you never used before, and another $200 to $300 for training that doesn't work. That is typical and likely for many IBOs who work the business. Their return on their investment of time and money is about $10 in monthly income. Sure, there are some diamonds who earn over $100,000 a year from Amway, but that experience is unusual, not the likely result of joining the Amway business.

Someone researching a franchise opportunity such as McDonald's for example, will want to know what the average owner/operator earns. Knowing only the best-case scenario doesn't help and while a real business owner may be interested in the best-case situation, that same owner is likely to be more interested in the likely results. Why should Amway IBOs be different?

IBOs = Free Advertising?

 This makes perfect sense from a manufacturer's point. You don't pay for Advertising.

In a way, Amway IBOs donate/dedicate much or most of their free time to doing advertising for Amway's products and services. They give absolutely free advertising to Amway at work, at school, in the office, at their church, at family barbeques, by trying to start a (fake) friendly conversation with a stranger at the local Barnes and Noble, or at local eateries, or the local supermarket. Some have coined the term "stalking" when referring to IBOs on the prowl for new prospects.  I recall my time as an IBO where I spent time at our local mall looking for people I knew or to make new contacts to prospect into Amway.

The first is, well yes, that's wonderful for Amway. But where in the world did you get the idea, it was good for you? If Walmart or Costco could sell you products for a marked-up cost, and ALSO get you to do all their advertising for them, for free then why wouldn't they?  Makes perfect sense if you really analyze it.

Most customers/consumers would notice that their time has value and remember to tack it onto the cost of the products they're paying. Eventually, they would say: "Oh wait! I'm paying more for the product and donating free advertising to the company! In addition to free advertising, it is also the IBOs who recruit other salespeople to join the business and to advertise and push products for Amway.

In Amway's case, most people won't notice this because they have dollar-signs in their eyes. They have "dreams" of walking the beaches while cash rolls in forever. Amway and AMOs such as WWDB or Network 21 convinces people that they're actually making themselves rich by this behavior, not going into debt. They apparently convince people to ignore obvious facts such as your business taking a loss due to standing orders and functions. It will be cleverly disguised as investing in your business, or that you are becoming a better person, or that true success is right around the corner.

Amway now pays for advertising, but I believe it is mainly to give their IBOs some credibility. They can say "see, Amway advertises on national TV. how can they be a scam"? In reality, I don't believe that Amway advertising dollars have made a significant difference in most IBO's bottom lines.   But Amway's catch phrase is "Now you know".  The problem for many IBOs in recruiting mode is that a lot of people have an opinion of Amway.  Whether that opinion is made fairly or not, it's real and causes great difficulties for IBOs trying to recruit into Amway.

When your ability to "succeed" in Amway requires successfully recruiting downline, a bad reputatation (earned or not) is not good.

Real Information?

 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.

Statues Of Critics?

 I often heard the saying in Amway: "there are no statues of critics". To that I would respond, there are no statues of Amway diamonds either.

I often wondered what the Amway opportunity would be without any critics. Most likely Amway IBOs would be blissfully building their business while blindly following upline advice to over consume PV and Amway related tools and functions. If you are in WWDB, have you noticed that your upline is often tracking how many audios you are sending downline and how many people you have attending functions? This is done because upline is trying to plan and makes plans for their projected income. Do the math on a major function and you will easily see what I mean.

Many Amway supporters think that critics exist only to tear down others or to bash the Amway opportunity. I see it completely opposite. I believe that Amway critics are important for IBOs. Without any opposing voice, IBOs would mistakenly believe that they are in Amway utopia except that eventually, they would notice that they are losing their shirts. An opposing voice is a good thing to bring up issues that you may not have thought of. Imagine what you might be like without the ability to feel pain? You might have injuries or illnesses that would go undetected which could eventually kill you. But you upline probably teaches people to "avoid negative". Avoiding excessive negative might be good but avoiding all negative is like an inability to feel pain.

When I was an IBO, our upline (and many others apparently) claimed that nobody made any profits from the system (voicemail, books, tapes/cds. functions). Without any opposing voices, this might still be happening. IBOs had no way of knowing. Upline just told bold lies and got away with it. To this day, none of these "awesome" leaders have even been held accountable for the lies. The diamonds simply ignored it. Sure, they now speak about making some income from tools, but there is little transparency about how you actually qualify for a share and how much you get when you qualify. Why is that?

Critics have also pointed out that many IBOs are taught to ignore important facts such as their profits versus losses. Some IBOs are taught "fake it till you make it" or they are taught to "buy from yourself", both of which are ridiculous from a business standpoint. But without an opposing view, IBOs would never question upline. In fact, many IBOs are taught to avoid all negative such as don't watch the news or read the newspaper. In other words, upline wants you to be apathetic and only read and intake their Amway propaganda. This is why some people accuse Amway leaders of running a cult.

Think about this. I believe that having opposing views are vitally important for IBOs to consider. Valid criticism is good for IBOs who are serious about building their businesses. Constructive criticism is a good thing. If you consider good criticism as negative, just remember: As far as I know, there are no statues of Amway diamonds.

What Is The Big Deal?

 Over the years I have been debating with Amway supporters, I cannot see what is so great about the Amway opportunity. Are some of these Amway defenders that stupid or dense that they truly believe that a business where one out of a few hundred people might make a profit and most of the remaining IBOs will lose money is a good opportunity? I'm not talking about people who sign up and "do nothing". Many IBOs sign up and put in a great deal of time, effort and money, only to find out that the system simply does not work (especially in the US) and they make a business decision to quit and/or to do something else.

Of course there are some people who make money in Amway. If nobody made money, then the opportunity would cease to exist. But it is basically exploitation of the downline that accounts for most of upline success. Thus, upline make their income from their downline's PV volume, and on tool purchases. I mean even a lottery has winners. Even Ponzi schemes and other questionable opportunities have some winners. This is not to suggest that Amway in not legal, but the way the opportunity is set up, those who profit, primarily do so at the expense of their trusted downline.

There are no groups that I know of where all the IBOs can win and earn a profit. I would guess that there might be a few rogue groups who only focus on retail sales, and while these groups can be profitable as a group, they are either nonexistent, or few and far between. This is because most IBOs fall under an LOS such as WWDB, BWW, LTD or N21, and these groups all seemingly focus on recruiting of new IBOs. Yes, they may sprinkle in some suggestions about selling goods, but generally speaking, their "training" materials consist of motivation speeches, feel good stories (whether true or not), and the theme of never quitting while continuing to purchase more tools. The primary purpose of the tools is to motivate you and teach you to recruit more IBOs, which is vital to Amway's existence.

Some upline have the nerve to start teaching downline that their Amway business is not about making money, but to save your marriage, make you a nicer person, or some other diversion to make you forget that you are losing money month after month after month. Some groups even mix in religion and politics into their functions and meetings. As far as I can see, the typical business buildiing IBO signs up, gets some of the tools and attends a few functions, and finds that the products are hard to sell because they are not priced competitively with other retailers, and that a damaged reputation is nearly impossible to overcome. These IBOs realize they are not going anywhere, and they walk away, chalking up the losses as a life lesson. But apparently, many uplines who lied and deceived in the past are continuing to do so today, often just revising history for their benefit (i.e. lying about making any profit on tools).

Many IBOs, prospects, information seekers and critics read this blog. My question is very simple. What is so great about the Amway opportunity? For most, it is just a bad use of time and money. While some may exist, I don't know of a single person who "did the work once" and sat back collecting barrels of Amway money while sipping Mai Tais on the beaches of Jamaica. I see crown ambassadors working as hard today as they did many years ago, and some dying while still working. Diamonds losing homes to foreclosures, a prominent diamond in bankruptcy proceedings, and a hoard of WWDB diamonds apparently selling off mansions that they allegedly paid for in cash. (It is quite apparent to me that their lifestyles are simply not sustainable).

Where is the benefit in the business for the typical IBO? Just as there are some diamonds, there are lottery winners. Displaying a lottery winner doesn't make it prudent to spend your money on lottery tickets. Displaying a diamond's lifestyle doesn't make Amway a good opportunity. While Amway is a business and not a game of chance, the results of either, sadly are eerily similar - that is a few winners and millions (or more) of non-winners.

What is so great about the Amway opportunity? I don't see it.

Reducing Middlemen?

 I remember seeing the plan as an Amway prospect back over a 25 years ago. I remember the speaker talking about how you can capitalize on distribution efficiencies to make money. We as IBOs would simply cut out the middleman and that savings would be passed onto us as IBOs. In its simplest form, it made sense and there was a misconception passed onto the audience that you will actually save money by purchasing Amway products. I even remember the speakers saying that even if the whole world signed up for Amway, even the last guy getting in would have the benefit of saving money. Looking back now, much of it was deception and lies. And to think, people now and back then paid good money for training on how to become, in my opinion, the least efficient manner in which to move products.

In a few weeks, we will enjoy the Superbowl. And as you know, Superbowl commercials can cost millions of dollars. But do you know why? It's because hundreds of millions of people across the world are tuned into the Superbowl. Companies probably have their best staff working on developing these commercials because they want to leave a lasting impression on their viewers. And it apparently works because people today are still willing to shell out serious coin for these commercials.

Amway IBOs advertise person to person, one person at a time.

What are the chances of an IBO ever moving a significant amount of products or being able to reach out to potential new downline when they prospect person to person, face to face, one at a time? To me, that is the most inefficient manner of expanding business. And let's face it, Amway's rules don't help when you are not supposed to advertise online without special permissions, and you are not supposed to sell product on Ebay or Craigslist. With today's technological society, it seems almost crippling to be so inefficient.

And even your beloved uplines, at your expense, run the most inefficient manner of doing business. Who needs voicemail when we have Facebook, email, twitter or text messaging? Not to mention the added expense IBOs face by these outdated technologies. Also, with video conferencing, skype, or webcams, why do people need to travel long distances for meetings and functions? The answer is simple, your upline might not want your success, they simply might just want your money. All of the training and motivation is a profit center for upline, and modernizing would simply reduce their tool profits.

Try asking that of your upline. Why do we keep using the most expensive and inefficient means of doing business and communicating? I'd be curious to hear that answer.

Upline Abuse?

 Below is an excerpt from an apparently newbie IBO in Britt Worldwide (BWW). Note how they are taught that they must ask upline before doing their work. This IBO also talks about not having to use his brain, just follow your upline’s advice. Submit to the leaders. Follow the system and success is guaranteed. Right, and Amway apologists have the nerve to deny that this stuff still goes on? I suspect it is more common than Amway defenders will admit.   Amway leaders love to take credit for every little success but have no accountability for the masses that fail and lose money.

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http://greatdealmway.blogspot.com/2009/08/bww-system-and-get-success.html

*3 Cardinal rules

A. never pass negative advises or rumors to your down lines.

B. you must ask to your up lines before going on your first work.

C. never ever go bad with anyone’s self-motive, money and family members.

*4 powers

1. Unity: unity is most powerful aspect. Do work in unity.

2. Power of submission to your work, up lines and customers: you must understand that you do not need to use your brain in this business. Just follow your leaders and submit yourself to them.

3. Power of spoken words: try out this simple but effective formula to gain success in your life. Speak out regularly about what you want in your life. It should be for this business, for family, for country or anything you want. This will reduce the negative energy and will create positive energy around you.

Do best and follow this system. Success is guaranteed!

Trading Hours For Losses?

 One of the ways that upline diamonds would put down your jobs was to toss in the phrase that a job was simply trading hours for dollars. As if it were demeaning to have a job where you got paid for your time. I believe it's all relative. Being that many IBOs are young and maybe working in more entry level types of jobs, then yeah, your hour's wage might not be that great. If you earn say $10 an hour, then you might be struggling financially, and it may take time before your skills and knowledge increase to a point where your experience is worth more money. What if you had a job paying $1000 an hour and earned $160,000 a month? Is that a lousy deal trading hours for dollars? I don't think so.   Let's not forget that full time jobs also typically give you paid vacation, sick leave and medical/dental benefits, and possibly a pension and/or access to a 401K.

Conversely, having a business can be good or bad also. If you have an Amway business earning less than $100 a month and you spend $200 a month on functions, standing orders and other training and motivational materials, then you are losing money. You would be better off working for free. That is still a better alternative than working a business where you are losing money. I think most people agree that a platinum group typically has a 100 or more IBOs. Thus, a platinum is in the top 1% of all IBOs. I have heard that the platinum level is where you start to break even or make a little profit, depending on your level of tool consumption. If platinums are barely making a profit, then the other 99+% of IBOs are likely losing money. How much is that worth per hour?

I think uplines cleverly trick IBOs into thinking that a job is bad. Trading hours for dollars, after all, sounds like some kind of indentured servant of sorts. But in the end, what matters is your bottom line. If you are an IBO with little or no downline, and/or not much in terms of sales to non-IBOs/customers, then you are losing money each and every month if you are attending functions and buying standing orders. Your 10-12 hours a week of Amway work is costing you money! But if you spend 10-12 hours a week, even at minimum wage, then you might be making about 300 to 350 a month gross income. After taxes, you make about 250 to 300. At least trading hours for dollars gets you a guaranteed net gain at the end of the month.

Uplines trick you into a "business mentality" where you think that working for a net loss is just a part of business. IBOs should realize that a business promoted as low risk, and no overhead should be one where you can profit right away. Instead, IBOs are taught to delay gratification, or to reinvest any profit back into their business in the form of tools and functions, which results in a net loss. If that's the case, I would choose trading hours for dollars.

Remember, trading hours for dollars is not a bad deal if you are making enough dollars per hour. And even those who make less, are better off that those who "run a business" but end up with a net loss. It's all relative and hopefully, this message will help new or prospective IBOs who are being enticed to join the Amway business opportunity. Good luck to those with jobs and those with businesses. You can be successful either way. Remember that!

Negative Cashflow?

 One of the things I am hearing about right now by Amway supporters is the concept that Amway pays you to shop there. The problem with this statement is that many IBOs see this rebate but do not calculate the fact that you can still have a better bottom line simply by purchasing a product elsewhere. For example, if Walmart started some kind of cash rebate program, would you quit Amway and shop at Walmart?

Then when an Amway supporter is cornered with this information, they will switch gears and start to defend quality versus price. It's all very predictable.
Honest question for IBOs. Why do you use KATE instead of the Amway voicemail system? Amway pays you to shop there, your upline profits from and does not pay you to use KATE.

One of the biggest problems with especially new IBOs is they ignore negative cashflow. And I cannot really blame them. They are usually sponsored by someone they trust and they are often taught to ignore facts or taught that they are investing in their business, just like a real business, even though when recruited, they are told little or ZERO risk. Thus, an IBO who intends to make a profit will generally get set up with a website and some other materials. While the cost may not be exorbitant, these few materials already exceed a new IBO's income unless they actually go out and sell some goods or are able to sponsor downline who sell and buy products. And the more dedicated an IBO is, the greater the chance is that the IBO's negative cashflow will be larger. When you start to add in standing order and functions, the cashflow gets more and more negative and there are many testimonies of massive debts built up by IBOs in a few years or less.

What's ironic is that many IBOs incur these debts at the advice of their upline, or if you will, "mentors". Many uplines will teach IBOs to "never quit". It is my guess that uplines will make blanket statements like never quit without knowing an IBOs circumstance. Just as a statement like you "need" to attend a certain function, or you need standing order. No assessment of an IBO's business or personal circumstances. It appears that uplines are simply interested in making a sale for their BSM business. You may ask why a diamond should assess a downline's business before issuing these statements. I ask why downline should call them "mentors". In the meantime, these downlines suffer negative cashflow from their Amway business. Ironically, some upline teaches that "insanity is doing the same thing over and over and expecting different results". Attending functions and listening to standing orders while losing money each month is that same insanity.

Built On Inconvenience?

 Looking back at my Amway IBO days, I can now laugh at some of the weird stuff we did and believe it or not, I have reason to believe that my old LOS, WWDB still teaches some of this and some other major groups also teach it. I believe some of these practices were the reason why some people refer to the Amway business as a cult or having cultlike qualities. If you recognize some of these practices, you might be in an unethical group, and you should ask your upline the tough questions and possibly reconsider or reprioritize your involvement in the business.

Late meetings. Our upline was into late meetings, many occurring after midnight. I suppose it was a show of loyalty and dedication to the upline and the system. In reality, it made most people angry at their jobs because they had to wake up early to go to work. For me it made me mad at our upline because the meetings taught us nothing of substance and it just made us tired. Our upline used to talk about time being important but it was never important enough to make him show up on time for his own late night meetings. Another cult like factor - sleep deprivation.  Our upline described this practice as Amway being a business of inconvenience, designed to weed out the weak and undedicated.

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 first. Afterall, upline had experience and probably had all the answers. Some of this checking upline included asking permission to get married, buy a car or a home, or even something as small as purchasing a camera. The upline said maybe someone upline might have advice on how to get a good deal on a camera so no harm in checking upline before making a purchase. It is my guess that upline didn't want your disposable income being spent on anything other than standing orders and functions.

Secrets. 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 5–10-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. Of course, we now find that some WWDB diamonds had homes foreclosed, and one prominent triple diamond had some dealings in bankruptcy court (chapter 7) . Looking back, I suspect that many diamonds have mortgages, which would not be a problem except that these leaders scoffed at the stupidity of having a loan. That diamonds pay cash for everything, including homes. My former sponsor still lives in a run-down rented home because he won't purchase a home unless he's got the cash. My former sponsor is a physician, so I find his position on buying a home preposterous. His oldest child, a son probably grew up deprived of his parents because of dedication to the system and the functions. 

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. People who sold off some of their personal properties were edified if they did so to attend a function. Obviously, these folks were not advised to run their business within their means. Upline even said that going into debt was okay, but only if the debt was to invest in the business or to buy extra function tickets. 

While some of these practices seem bizarre, I believe it is because the upline advice was self-serving and meant to channel their downline's dollars into tool purchases. It is the only conclusion I can make.

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 sandcastle 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.

Upline Conmen?

 When you really look at the Amway opportunity and the systems such as WWDB, or BWW or Network 21, they are more alike than not.  They sell business support materials such as books, audios and function tickets to seminars.  They systems are highly profitable even when the vast majority of IBOs are not.  And the upline like to call themselves mentors or friends who only want your success.  They say they would never purposely lead you astray and have your best interest at heart.  In my opinion, it's a load of hogwash.

Why do I say that?  Because IBOs sign up to make money.  Some have big dreams and desires while some join because they want to make an extra $300 a month.  But the reality of the entire game is the vast majority of IBOs lose money regardless of their dreams, aspirations or desire to make a little extra money.  How is the upline helping these IBOs if they are losing money?  They certainly didn't join to lose money.  Ironically, uplines make money, sometimes lots of money off the support materials they sell to downline, regardless of the results.   Then they use silly analogies such as people signing up for the gym and not going.  I can make this argument; People who sign up for the gym to get stronger, or more fit, get stronger and/or more fit if they attend and work out regularly.   The same cannot be said of IBOs who listen to upline, show the plan, buy all the support materials and follow upline advice.  These folks still lose money even if they do everything upline advises.

This is why I compare upline diamonds to conmen.  They convince downline to trust them and assure them that success will be there, or success is right around the corner if you will never quit and keep doing as they advise.  Then when there are no tangible rewards for your efforts, they claim you didn't do things exactly right or that you didn't actually follow their advice correctly.  The ironic part is that upline like to teach accountability.  They hold everyone accountable, except themselves.  Upline's solution to a failing business is not to cut expenses or come up with a new business strategy, but to invest more money into the same tools and techniques that aren't working.  Doesn't upline also teach that insanity is doing the same old, but expecting different and better results? 

The fact that upline will continue to push more tools AKA business expenses/expenditures on a business that generates little to no revenue just makes them conmen, in my opinion.  They knowingly issue self -serving advice such as buying more tools which they profit from, and at the same time, is adding to an IBO's business losses, regardless of that IBO's ability to afford it.  How is that serving the IBO's best interest?   At the same. the upline enjoys the trappings from their ill-gotten gains.   Then if and when an IBO quits, they are often shunned as a loser, or lost their dream, or some other negative afterthought, even if they gave an earnest effort for months or maybe even years,   

What amazes me is how these diamonds are put on a pedestal as if they are rock stars when in reality, the vast majority just appear to be common thieves.  Just like the original movie version of "Die Hard" when Bruce Willis realizes that the terrorists are really just common thieves, which is what he calls them in the movie.  I would recommend that information seekers look for a book called "Amway  Motivational Organizations; Behind the Smoke and Mirrors", written by Ruth Carter.  It's a chilling look at how a diamond couple looked and appeared wealthy, while actually living a debt and portraying the Diamond Lifestyle.   It's a look at reality of a diamond couple and I suspect its more common than not.  

 

Something For Nothing?

 In my opinion, Amway is a pyramid. They are not illegal, but still a pyramid. The reason why they remain legal, apparently is because they do not pay anyone for recruiting downline and allegedly require sales to non-Amway people, although I'm not sure how hard this is enforced. But most everyone has been or knows someone who was recruited by a zealous Amway IBO. The emphasis of most active IBOs is on recruiting and much of the teaching by upline is on techniques to recruit and/or how to talk to people without tipping their hat to reveal the Amway name. Most IBOs are not very good at this, and they stick out like sore thumbs in many cases. It's also comical when uplines teach crazy antics, like how some IBOs use to deny that Amway and Quixtar (Amway was called Quixtar back in 1999) were even remotely connected.

One of the reasons IBOs use to justify their involvement in the pyramid is that they can work and earn more than their sponsor. While that is true, it is only because everyone below the emerald or diamond level is basically expendable, or a slave in the pyramid. And frankly, many IBOs do little or nothing so surpassing someone who does nothing isn't that hard. There are many IBOs who achieve fairly high levels who quit, or had upline wreck their businesses. Thus, even platinum's are expendable to upline. In fact, an upline might make more money by removing the platinum. For new IBOs or recruits, do you really believe that you are going to ever surpass your current upline diamond or higher? If you believe that, you are sadly mistaken. If a diamond "de-edifies" you, you're toast. And guess what happens to your downline? They get passed on to your next upline.

And for those who dream of achieving diamond and walking the beaches of the world. How do you think you can ever achieve that? You don't get something for nothing unless someone gets nothing for something. In order for you to receive income for little or no efforts, your downline IBOs must keep purchasing products and replacing IBOs who quit. If your downlines cannot keep up with the attrition rate, your business will collapse in a hurry. Come to think of it, if a diamond can walk away and collect a large income forever, why hasn't anyone done it? I mean we still see crown ambassadors still busy working functions and I don't know of any who walked away to spend their lives jet setting on the beaches of the world.

The sad reality is that you see new faces at meetings and functions, just as often as you see familiar faces disappear. With that kind of attrition rate, you may have to work even harder at the higher levels just to keep your business status quo. In Egypt, the slaves built the pyramids. Do you have enough slaves? What many Egyptologists find amazing is how the Egyptians were able to motivate the slaves to keep on going, doing backbreaking work all of their lives. The same can be said of a diamond level business (or higher)

Why People Believe?

 Many Amay IBOs cannot be convinced that Amway is not the best opportunity in the world, because they want to believe the lies/deception that is often used when they are recruited. They want to believe that 2-5 years of part time effort will result in lifelong residual income and that they will be traveling to the beaches of the world while cash keeps rolling in. They want to believe that they can ditch their (often) less than adequate jobs. They want to believe that a part time soap business will make all of this possible. The people (upline) who claim to have everyone's best interest at heart will sell them a proven system of success and all they need to do is follow the steps to success.

Many people sign up for Amway and do absolutely nothing. They may not ever order or try products. But these folks do not complain about Amway and the expenses they may incur are minimal. Most do not even bother to seek a refund on their starter kit. It makes me wonder why these folks even bother to sign up. Although, there are stories of people being pestered into registering. Anyway, the part where this business gets dicey is when people register and do put in an earnest effort, only to end up with financial losses. Sometimes the losses are in the tens of thousands of dollars. You get squeezed for a couple of hundreds of dollars a month and after a few years of effort, you can find yourself drowning in debt, even after doing everything your upline advised. The fact that uplines don't disclose their business financials speaks volumes. Former uplines who have come forward have shown that most of their income was from hawking standing orders and seminars, and not from Amway sales as they would imply.

I bought into the hype at one time. I believed the lies. I believed my upline that no profit was made from tools. At the time I was an IBO, I too, wanted to believe that I could work part time for 2-5 years and ditch my job. That I would retire at the age of 35 and live in luxury forever. I wanted to believe that. But having reached the 4000 PV level, the precipice of platinum, I also realized that I had no profit. I sat down and did the math and realized that they would be little profit at platinum. I came to the realization that a second job would have suited me better. I finally quit when I realized this, along with my upline wanting total control of my life. But I hung in as long as I did because I wanted to believe that Amway would be the vehicle that delivered my financial freedom.

Having dropped out of Amway, my life quickly got back to normal. Friends that I had avoided returned to my life. My disposable income increased, and my cash flow was positive once again, now that I was no longer obligated to purchase tools. I also noticed years later that the same old leaders on stage were still working as hard as ever, and none of them had taken the option to retire and walk the beaches of the world. Perhaps these leaders also want to - or have to believe in Amway because they have already invested too much time and effort to call it quits and start something else. I wanted to believe, but the fact is that people were not succeeding. People were not getting free. What I saw was home foreclosures, bankruptcies and financial struggles made worse for people because of Amway and the tool systems. And apparently, these same issues apply to the diamonds. Do your research and you will likely find the same conclusion that I did. That Amway is an impossible dream.

IBOs "Giving" Back?

 I get a kick out of uplines who talk about donating $5000 or $10,000 checks to church/charity one day when you go diamond. They talk about giving back to the community. It's all fine and dandy, but overall, what do IBOs give back? Most dedicated IBOs end up with a net loss of time and money because of their dedication to the system and therefore, have less to "give back".

I'm sure some Amway IBOs and leaders make the time to give back, but I would bet that many refer to delayed gratification when this issue is raised. In the past, some diamond's financials became public record due to unforeseen circumstances and not once did I see the large monetary contributions they speak of. You'd think double diamonds would be giving hundreds of thousands of dollars since they imply that they live million-dollar lifestyles in functions.  I saw little to no charitable contributions in tax returns that were public information due to a diamond filing for chapter 7 bankruptcy.  Imagine that?

Think of this food for thought. Your local church is better off with you giving a couple hundred a month and helping to feed the homeless than to get nothing until you go platinum or diamond. As an IBO, I was guilty of this also. I thought I could provide a lot when I achieved emerald or diamond. I didn't think anything about not helping during my IBO days though. I was too busy working the business and my funds primarily went to fund product purchases and tools and functions.   My discretionary spending was very limited because of my dedication to the tools and function, and overpriced household products.  
 
I believe that most IBOs have good intentions and want to give back and help. But I also believe that upline advice in many cases will sap their ability to do so because of tool and function purchases. That's what is so insidious about certain upline leaders. They only care about their bottom line but give their downline the impression that they care about them and want them to succeed. For example, if it's true that some downlines were advised to attend multiple Dream Night functions, what are the uplines doing other than draining their downline's bank accounts, something they are supposed to help enhance.

Some IBOs might give back, but what are they giving back?

The Truth?

 One of the silly things many IBOs are taught is to avoid negative. I believe this is taught today by uplines and it was certainly a point of emphasis even in my days as an IBO. The upline diamond would say that the world of full of negatives and that we as people take in too much of these negatives. Therefore, the IBOs were told to avoid television, newspapers and other forms of communication with the outside world. The group was also told to avoid people who speak negatively about Amway. For this reason, many people have considered Amway groups such as WWDB or N21 as cultish or cult-like. (information deprivation or information control).

I can agree that you surely don't want to only take in negatives as it can wear you down, but not seeing the news or reading about current events in the paper simply makes you apathetic and uninformed. For example, wouldn't you want and need to know if there was a storm heading your way? I live in Hawaii, and we occasionally have hurricanes. Avoiding news could be very detrimental to your family and home. If you lived in the Midwest of the US, wouldn't you want and need to know if a tornado was headed your way? Do you avoid the doctor because his assessment of your health might not be "positive"? For these reasons, I believe that many Am Wayers walk around wearing a mask with a false smile, trying to overly positive.

Another important thing that many IBOs cannot distinguish is the difference between negative and the truth. If your wife asks you if her new dress makes her look fat, the truth might be that the new dress indeed makes her appear fat. That answer may be uncomfortable for you to deliver, but the truth is the truth. The truth at times can be positive or negative but it is still the truth.

Most IBOs earn less than $100 a month. That is the truth. Most IBOs lose money if they participate in functions and standing orders and such. That is the truth. Most IBOs will never even sponsor a downline. That is the truth. Most IBOs, filled with motivation and dreams, will never see those dreams fulfilled. That is the truth. Many upline diamonds, who advise IBOs to purchase tools and attend functions, and fill the IBO's heads full of dreams, make significant incomes from the sale of tools and functions. That is also the truth. In a 1-year timespan, approximately 50% of IBOs will quit. That is the truth.

Is it negative to tell the truth? Or can IBOs not handle the truth?

Don't Quit Your Jobs?

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

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

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

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

Amway And Holidays?

  I recall being an Amway IBO many years ago.  IBOs wind up being social pariahs at times because they have ulterior motives at social events.  Or at least the ones that their Amway schedule allows them to attend.  I found it humorous that Amway diamonds would teach about vertical alignment which means God, Family and your job came first and Amway fell in line after that. But at the same time, you were expected to never miss a meeting or function, no matter what at the risk of not being CORE.  

It must be awkward at times to be at social gatherings knowing that some IBO might be eyeing you up as a potential Amway prospect.  Amway IBOs are shameless at times when it comes to looking for potential recruits.  After all, you can’t go diamond without a group of IBOs down line.  I recall doing sone of these zany things myself as an IBO, but luckily, I saw the light and snapped out of my Amway trance pretty quickly.  I managed to avoid losing my friends be being an "Ambot".

So to that I say to Amway IBOs.  Have a Merry Christmas and give up prospecting for two to three weeks.  Enjoy the holidays without having a motive.  Enjoy your friends and family and don’t worry about Amway for a few weeks.  The world won’t come to an end and more than likely. Your business won’t have been affected by stopping recruiting for a few weeks to enjoy the holidays.   Your upline will say your business will bet setback for 6 months, but if you have little to no downline, what difference does it really make?

I don’t know what the new year will bring but you’ll survive, and life will go on.  By now your upline diamonds are likely promoting a major function called Dream Night or something like it.  While it might be a virtual event, you will be shown sports cars and jet skis, and other luxurious goods.  All to get you “dreaming” so you’ll be motivated to keep building Amway. Of course, to attend dream night you’ll have to fork out $75 or more and it might include a dinner.  In the end, you and thousands of other IBOs paying for these functions and other tools is how the diamonds pay for the stuff you might see at dream night.  

Don’t believe me?  Do the math.  

Happy Thanksgiving!

 Happy Thanksgiving to you and your families out there!   Please take the time to spend with families and loved ones.  

If you're in Amway, take a break.  Missing a day of "prospecting" or missing a day of listening to Amway related propaganda isn't going to set you back 6 months like some upline like to imply.  Maybe it's time to reflect on your efforts versus rewards, or your return on investment as they say in the business world.  Are you actually progressing towards financial freedom or not?  It's not a complicated question afterall.

If you're not in Amway,  Enjoy your family.  Leave political discussion for another time.  I almost can't believe that some of my friends whose adult kids don't want to speak to them because they voted for different people in this last election.  Relax, it's not the end of the world no matter who wins.

When I look back, I'm thankful to be a US citizen.  And I'm thankful that our founding fathers were so brilliant (more than 200 years ago) to set up the best country in the world.   If the constitution remains intact along with the checks and balances provided, the US will eventually self correct itself like it's done in the past.

Just enjoy the Thanksgiving Holiday and the upcoming Holiday season.   

  

An Observation?

 

An Observation About Amway?



http://forums.randi.org/showthread.php?t=192279&page=8

It's refreshing to see so many good people on this forum telling the truth about Amway. It looks like the pro-Amway shills here and on other sites are becoming increasingly outnumbered and desperate. I've read through this entire thread and think it is hilarious how many times the shill has to move the goalposts or play word games to make Amway look like an amazing business opportunity.

I was originally introduced to Amway many years ago in my late teens by an uncle of mine. I attended a few of their seminars and was impressed at first. But the whole thing started to seem ridiculous and unrealistic and so I didn't get involved any further. Also, I'm not that materialistic, so Amway's message doesn't appeal to me. I wish my uncle had been more skeptical.

My uncle was very devoted to Amway for a few years. He bought all their products (especially the tapes and books), tried to get others to buy them, and also tried to recruit all his family and friends into his new religion. He eventually lost money and friends and alienated himself from much of his family.

Already heavily in debt, he eventually fell for another, even bigger get-rich-quick scam shortly after quitting Amway (to Amway's credit, they don't threaten to kill anyone for leaving Amway). This one robbed him of his entire life savings. The scammers got away with it because they knew how to play him right (he met one of them through Amway). His wife divorced him soon after.

As if this wasn't enough, after making a modest financial recovery with his business over the course of several years, he loses it all to yet another scam. He had to borrow heavily from the few friends he had left since no bank would ever give him a loan, and almost no one in the family has anything to do with him anymore. I haven't seen him for 15 years.

One thing I wonder about my uncle is if all those seminars and inspirational tapes and books softened him up to fall for all those other scams he fell for after quitting Amway (he didn't have a reputation for being gullible before joining Amway, though he was never that bright to begin with). If I remember correctly, he tended to blame himself for failing at Amway and may have never understood that it was a big scam or at least not a good business opportunity.

I still remember those crazy seminars and how they told everyone that joining the Amway cult will likely lead to yachts, exotic vacations surrounded by hot bikini babes, and shiny expensive cars, among other symbols of wealth. Everyone is told at the seminars and in the "tools" that they have all this unfulfilled potential, but to realize this potential we must avoid those small-minded "dream killers"(skeptical family members and friends).

The story about my stupid uncle is true. There are many other people out there just like him who have fallen for Amway and others MLMs. The few people I've met who claimed they were very successful at Amway usually seemed sleazy or I would find out years later they were up to their eyeballs in debt.

The person who said before that the people who regularly attend these seminars are mostly fools and misfits was spot on.

Dreams Don't Pay The Bills?

 One of the things used as a recruitment tool my upline is to get a prospect to think of dreams. Dreams could be extravagant like owning a yacht or it could be simple like taking a cruise ship to Alaska. The recruit is told to dream big and to envision things they would like to enjoy. Perhaps it is not having a job, or perhaps it is being a stay-at-home mom. These are all great dreams and goals. Dreams and goals are good things to have. The speaker will then tell the audience that these are all possible thru the Amway opportunity. They won't say it is highly unlikely. They only give you the pie in the sky best case scenario.

Now some people may have achieved great success thru Amway. But these people are so few and far between that you could argue that the lottery has the same kind of success or maybe the lottery has more winners than Amway diamonds. Granted the lottery is a game of chance, and Amway is not, but the "likely" results can be comparable. In Amway and the lottery, you have the vast majority accomplishing nothing and losing money. You have some "best case scenarios" where a few are successful. You then focus on and display the success testimonies as evidence that "anyone can succeed", just as anyone with a ticket can win the lottery. The fact that a game of random chance produces similar results as Amway should be a red flag.

Some uplines will often tell their faithful downline that someone who speaks negatively about Amway is a "dream stealer". Of course this is ludicrous. Your dream is in your heart and mind. Nobody can steal that. Secondly, whose dream is being compromised.  It is the upline diamond who has all the goodies and the large checks right? The downline are basically ones paying for their upline's dreams. It is fairly well known that the majority of Amway products aren't sold to people who are not IBOs. It is also well known that 99% of tools and business support materials are sold to IBOs. So guess where your upline diamond's success comes from? That's right. An IBO's product volume and an IBO's tool purchases provide the upline diamond with a nice income. Stop and think about it for a moment.

So yes, there are some people who achieve their dreams in Amway. There are also people who achieve their dreams playing the lottery. There are millions of people who tried to build an Amway business and did not achieve. There are millions of people to play the lottery and do not win. Some dreams get built, but chances are they won't be yours. There is a good chance that your upline diamond's dreams will come true if you "never quit" and you stay on the system.

The question is whether you are seeking to build your dreams or someone else's?

Reality?

 One of the things that keeps some Amway IBOs going is the "harsh reality". What I mean by that is for some IBOs, once you have been in Amway for a while, it can be hard to quit. You were possibly recruited with dreams of lifelong residual income and walking on all of the exotic beaches of the world. Retiring young and spending that time with your wife and family, and Amway friends. To quit means an IBO would have to face the reality that these dreams will not come true, at least not with the Amway business. The fact is that the Amway opportunity probably would not have delivered those dreams anyway. Even a diamond more than likely cannot afford those dreams. In fact I would estimate that most diamonds, if they flaunt some excessive lifestyle, are near broke or in heavy debt as a diamond income cannot sustain a jet set lifestyle, save for a founders double diamond or something similar. I believe the prominent WWDB triple diamond bankruptcy shed a lot of light into the finances of an upper level pin and it wasn't as impressive as I would have thought.

The triple diamond who filed for chapter 7 bankruptcy made about half a million dollars annually from Amway. That's a great income and more than most people earn, but seriously, a half million dollars income is not going to allow you ti buy mansions paid for in cash, or a fleet of sports cars. After paying taxes and business expenses, I'm not even sure someone with that kind of income even lives a worry free life of leisure. And we're talking about a triple diamond, not your average run of the mill regular diamonds who I would safely assume, earns much less than a triple diamond.

But what really is the harsh reality? It's working hard only to drift between 100 and 500 PV. It's finally sponsoring a new IBO only to have a downline quit. It's talking to people about Amway and getting laughed at or getting rejected. It's your upline or sponsor pushing you to do more. Possibly your upline is one who questions your manhood if you aren't working hard enough. It's your upline or sponsor reminding you that a winner doesn't miss functions, especially the major ones. It's staying up late for team meetings or night owls when you need a good night's rest to do your job the next day. It's driving the miles to show a plan, only to have your prospect not show up. It's having to be deceptive about what you are doing. It's skipping functions with family and friends so you can be core to the business.

As IBOs, do you see any of this? I saw some of this during my involvement. While I have not been an IBO in some years now, I still see many testimonies and comments by more current and even some active IBOs to indicate that a lot of this still goes on. While Amway defenders will deny it, I see no reason why any of this would have changed over the years since Amway has made no significant changes to stop abusive uplines. If Amway did make any changes, they are not immediately apparent and the continuous string of comments and testimonies do not confirm that any clean up has been done.

For active IBOs or prospects, these are the harsh realities that may be attached with the Amway opportunity. Much of it is because of motivational groups such as WWDB, but if you are seeing these traits in your group, ask the tough questions. If you happen to decide that the Amway opportunity is not for you, take heart! There are other ways to achieve your financial goals and dreams and there are more efficient ways out there. Sometimes, quitting something that isn't working is a wise business decisions and sometimes you can lose more by not quitting. Good luck in whatever you decide.

Get Out Of Debt?

 Getting out of debt sounds like good advice. On the surface it is because people should not be racking up consumer debt or committing large sums of their income for cars they cannot afford. But what does it mean for an IBO? I know my former upline taught our group to get out of debt. However, I believe my former uplines had self-serving intentions when they taught this. Let me translate what I believe they meant:

"You should not have any debt because it would affect your ability to buy more PV and tools. If you have debt, it affects my cash flow"

Ironically, for many, maybe most IBOs, although taught to get "get out of debt", the bottom line result is more debt. There is more debt because the cost of products and tools begin to mount. How many families actually spend $300 a month (approximate cost of 100 PV) on household products? And then to add onto that expense, IBOs who are trying to be "successful" need tools which cost anywhere from $150 a month up to more than $500 a month depending on whether the IBO is married, single and the level of commitment. Thus IBOs are now spending at least several hundreds of dollars that they never spent before.

Most IBOs, especially new IBOs, generally earn less than $50 a month. In fact, $50 a month income in this business would make you quite exceptional. Most IBOs earn less than $20 a month. With that kind of income and with the expenses I listed above (tools = voicemail, books, standing orders, and functions), nearly all "serious" IBOs operate in the red and never turn a profit. The only way an IBO can turn a profit is to sell Amway products like crazy (which I have never witnessed) or to sponsor enough downline to absorb the losses for them. The only true success stories are the ones who sell the tools.

The reason why I believe that my former uplines (who are still in WWDB and apparently teach the same things now as they did back when I was an IBO) are teaching self-serving advice because although they said to "get out of debt", they made an exception to this and said it was perfectly okay to go in debt to attend functions or to buy more standing orders. IBOs were also told to do "whatever it takes" to get to the next function or to buy more tools. It is why I witnessed some cross lines go bankrupt, more than one couple lost their homes following upline advice. And these couples were told they shouldn't worry because they can pay cash for their homes when they go diamond. Another apparent lie told by WWDB leaders, especially those who had their own homes foreclosed.

Let's be perfectly real here. If you join Amway and participate in the system consisting of voicemail, books, standing orders and functions, you are far more likely to get into debt or increase your debt rather than making money and getting out of debt. The math bears it out if you are willing to look at it objectively.

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 evidence or 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.  The problem in reality, is that Amway doesn't get results for the vast majority who make an attempt at it.

You are then shown the plan, and many people think that 2-5 years and "finding six" (Finding 6 = sponsoring 6 downline platinums, which would make you a diamond) 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 startup costs. Again, how can you argue with that logic?  The problem is that it's not true.

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.

Diamonds Pay In Cash?

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

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

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

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

You Upline Is Just A Tools And Functions Salesperson?

 Our group (WWDB) edified people who bought extraordinary amounts of extra tapes/cds, extra function tickets and made superhuman efforts to get to functions. Looking back, I remember an IBO who was edified for coming all the way to a family reunion function in Portland Oregon when he was diagnosed with terminal cancer. The speaker said he could have been miserable spending time at home but here he was making a difference in people's lives. WTF? I once wrote a post about how IBOs think they are saving the world and helping people when in reality, the masses of IBOs are only "helping" their diamonds to attain material wealth by purchasing function tickets, voicemail, standing orders and other materials. While people are doing community service, IBOs are sitting in functions and rah rah meetings.

I would agree that some training and information can be helpful for new IBOs, but I do not see any value in a never-ending supply of CDs/Audios and endless numbers of meetings and functions. The very thing (support materials) that uplines claim is your key to success is the very thing that nearly guarantees business building IBOs will have financial struggles. Our upline wanted IBOs to be out of debt, which is good, but they would also say in the same breath that it was okay to go into hock if it was to attend functions or to purchase additional support materials. Sadly, many IBOs do not see through this self-serving advice.

Most people, including myself are very wary when we deal with car salesmen. We are wary because we know that the salesman is out to make money off of us and will try to sell us every option in the book. Thus, we negotiate and reject the car options that we don't really need to or. Guess what? Your uplines are like car salesmen except that they sell you different options such as premier club, standing order, book of the month, function tickets, voicemail, open meeting tickets. Just like a car buying customer, taking all the options maximizes the car salesman's commission and the car dealer's profit. Buying all the support materials increases your upline's profits. Imagine the car salesman telling you that the extended warranty was vital to owning the car. You'd think twice about it, yet uplines will tell you that functions are vital to your Amway business and many IBOs buy it hook line and sinker. I hope this analogy will encourage IBOs to think of support materials as options on the car. You don't need any options to make the car work. Just as you don't really need support materials to buy and sell Amway products, and to get some downline to do the same.

We are wary of car salesmen. In my opinion, downline and prospects should be just as wary of uplines who promote tools as "vital" to your success in Amway. Keep in mind that a sponsor is obligated to help train any downline, regardless of whether they are on the system or not. (Amway's rules)