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)

A Million Dollar Business?

 So many Amway IBOs mistakenly believe they will work for 2-5 years, own a million-dollar business and retire from their jobs walking the beaches of the world while cash rolls into their bank accounts.  Sometimes I wonder if Amway diamonds and IBOs even know how you come up with a valuation for a million-dollar business?   I'll bet many wouldn't even be able to answer that question.  Sadly, most IBOs won't get anywhere near to the dreams they were sold as prospects in the Amway business. This in my opinion, is the crime in all of this. To fill someone's head with false dreams and hopes and then profit off them by selling them tools that will not help to fulfill those dreams. In fact, the cost of tools is what sometimes leads to financial ruin for some IBOs.

Most IBOs will never sponsor a downline and many IBOs will not even have a single customer. What kind of business can become wildly successful and profitable without a lot of customers?   The answer is none and to think otherwise means you have no idea of how a business works.  It seems that only in Amway and some other MLM offshoots do we see this warped teaching of buying from yourself as a means to become successful in a business. Many people, desperately wanting it to be true, will buy in and give the business a try. Then after a while when progress stalls or it becomes painfully obvious that things aren't working out as promoted, they get discouraged and quit. Most quit and never complain, partly out of shame, or perhaps these former IBOs don't want to complain about the friends and family who sponsored them.

I would challenge prospects to go and look at a million-dollar business. Go to the mall and see what some bigger businesses look like. Does your Amway business resemble it in any way? Do you have customers in proportion to a million-dollar business? Heck for that matter, does your upline diamond really have what looks like a million-dollar business or is their real business selling you standing orders and function tickets? It would appear that standing orders and functions are a million-dollar business. Many unsuspecting IBOs are the customers of the tool and functions. Unfortunately, there is no unbiased documented evidence that the tools do anything other making your uplines wealthy.

Stolen Dreams?

 I often hear stories and testimonies about how some people (usually newbies) have this incredible belief in Amway, their sponsors and their LOS, such as WWDB or Network 21. Being that many, possibly most IBOs are sponsored by a friend or family member, means that there is an inherent trust in the sponsor or upline. If that were not true, then we would likely see many more complaints about Amway and/or the uplines and lines of sponsorship.

An important facet of being an IBO is to have a dream. Don't let "naysayers" steal your dream, is what many IBOs are told. But what is that dream? Is a dream (a long-term attainable goal) or a wish such as winning the Powerball lottery? Many prospects and IBOs want to succeed. They are willing to work hard, and are very dedicated, I would say that these folks usually will end up failing, not for lack of effort, but for a flawed MLM/Amway system that cannot possibly reward more than a few. The famed 6-4-2, 6-4-3 or some other variation of the plan will illustrate that only 1 in 100 or so can be "platinum". And that's with nobody quitting. Factor in attrition and "do nothings" and it might be 1 in 200 who can reach platinum. Even if the whole world signed up for Amway, that fact doesn't change. Amway apologists might disagree, but numbers are numbers and anyone can draw out groups and anyone can plainly see that a platinum group is one platinum with about 100 or more rank and file downline. Some may achieve 1000 PV or whatever, but generally speaking, only the platinum might make a net profit, depending on tool consumption. There is some evidence that platinum's actually lose money. Imagine that!

Do you really believe in Amway and your line of sponsorship such as WWDB or Network 21? If you truly believe in Amway and your mentors, I challenge you to do one of these things. If you can't or won't, then I question your level of commitment. I question your belief. I'm not here to steal your dream. I am just challenging you.

Take your 6-4-2 or 9-4-2 or 6-4-3 plan (or whatever version you saw) to a loan officer at a bank and show them the plan. (Hey, it will help you be CORE) Ask the loan officer for their opinion of the plan and see if you can get a business loan based on the Amway plan. If not that, try seeking the advice of a real millionaire (Someone who has a net worth of a million bucks) and see if they think the 6-4-2 or other Amway (version) plans can work and whether they think Amway is a good idea. Heck, try asking your church Pastor. My church Pastor said Amway had too many false hopes and promises to be considered a viable business option. In other words, the business did more harm than good for most people.

How strong is your belief in Amway? Strong enough to take my challenge? Or will you ignore this and go on fooling yourself? Are you still dreaming of hitting it big or are you thinking I'm here to steal your dream? I'm not here to steal anyone's dream, just to stimulate your thought process. Good luck.

Dream Night?

One of the things that uplines commonly talk about is fulfilling your wildest dreams. They want to show IBOs and prospects "what is possible", or best-case scenario and not what is likely.  But what is possible is like showing off the winners of lotteries because the reality of the Amway business is many will lose so a few can win. A simple analysis of the 6-4-2 plan or whatever version your group uses will reveal that the lower layers of IBOs are losing money, and they lose more if they are subscribing to various tools such as voicemail, standing order, and attending functions and meetings. This is inevitable and a reality of the Amway business.

So, whose dreams are fulfilled? Based on projected income from Amway bonuses and income from selling the tools, I would have to say that only the dreams of your upline get fulfilled by your hardcore dedication to the tools system. Even someone at 1000 to 2500 PV will be losing money if they are hardcore sold out to the system. Of course, some of this might depend on where you live and how far you must travel to attend functions. But in general, many IBOs are being advised to "reinvest" any of their bonuses into tools and functions. Ironically, reinvesting into the tools is why these IBOs end up with a net loss. And of course, reinvesting your profits only benefits your upline and not yourself.

Another sad chain of events is that upline will ask for your trust. That they have your best interest at heart and want your trust. Do as they advise, and you are assured of success. Then if you do everything you are told, your upline will blame you for failure or teach you to blame yourself for a lack of effort or not doing "exactly" what they told you.  It's called plausible deniability.  Uplines as far as I know have never been accountable for advice that they pass downline. But they are quick to take credit for the limited success that is grinded out of the system. It is puzzling to see shameless apologists continue to defend and promote an opportunity where the vast majority end up with a net loss. In some cases where downline have sold out to the system, the losses can mount into tens of thousands of dollars or more over a short period of time.

Starting this month and into next month, there will be a WWDB function called Dream Night. A function where you might see slide shows of mansions, yachts, sports cars, exclusive vacations and other trappings of wealth. The diamonds may say do as we say, and you can have what we have. What goes unnoticed in all this is that the diamonds may not in fact own or have some or all of the goodies shown in the slide shows. They might not have the kind of income you think. Some may have financial difficulties, but one thing seems clear to me. That downline's dedication and tool purchases help the upline diamonds to fulfill their own dreams, but not yours.   Dream night is just a show to pimp their tools and functions systems, which fulfills upline's dreams, but not that of the rank and file hard working IBOs.

Joecool Off To the Carolinas?

Joecool is headed to the Carolinas for some vacation and to visit friends.  I'll be back in two weeks.  No Amway money needed to fund my travels.  :) 

In the meantime, enjoy this article entitled "The Math"

It is my observation that the vast majority of people who join Amway usually end up losing money in the end. They may get involved to make a few bucks or because they are mistakenly led to believe that they will become millionaires in Amway in 2-5 years. I know my sponsor convinced me that we would be millionaires in a few years. These folks who recruit new IBOs into Amway are often associated with a "system" such as Worldwide Dreambuilders (WWDB)or Network 21 (N21). These system promoters, often diamonds, may mislead the recruits by showing them pictures of mansions or other luxuries, implying that they attained these goods with their Amway business. In many cases, it is a deception, especially when we know for a fact that some diamond leaders who proclaimed that they only make cash purchases, had their homes foreclosed. Without the hype, I am sure there would be fewer sign ups. But what is the evidence?

It is simple. Amway reports that the average active IBO earns about $200 a month in gross income. This average includes diamonds and other higher end IBOs. I believe if you calculated the median, the average would be much lower.

But what makes IBOs operate at a loss is the system expenses. The system generally consists of voicemail, standing orders, cds, functions, books and other materials. An average business building IBO might spend an average of $250+ a month or so on these expenses. Amway defenders like to decry the amount, but there are couples who would likely spend more and IBOs who must travel by air to functions would spend more. Single IBOs who buy only the minimum might spend a bit less. Some IBOs with abusive uplines might spend much more than $250 a month on tools. I believe my former sponsor spent easily an average of $1000 a month on average. (I am from Hawaii so the average cost of functions is greater due to long distance travel)

Thus if the average IBO earns $200 a month but the same average IBO spends $250 a month on tools, the average active IBO is losing $50+ a month, with lower level IBOs (i.e. 100 PV) would lose more.

Look at a group of 100 IBOs at 100 PV. (This is just a model). If a 100 business building IBOs average $250 a month on tools, they as a group would expend $25,000 a month on tools and functions. Their volume would be 10,000 PV, or about 30,000 BV. This would generate about $7500 in bonuses per month. Thus this group spent $25,000 to learn and be motivated while the group splits up $7500 a month in bonuses. The platinum would get the lion's share of the bonus but most of the rest of the group will suffer net losses. As the group grows, the bonus may grow, but so will their expenditures on tools. Keep in mind that a group of 100 IBOs spitting up $7500 would be an average of $75 each. It is the diamonds that drive up that average. The math bears it out.

The only way the group can make money as a whole is to avoid participation in the tools altogether and to actually sell products to non IBO customers. The evidence is right here with simple math. The systems do not work because the cost of the system is likely to consume all of the Amway generated bonuses and more. I gladly challenge anyone to explain in detail how this post is not reflective of the reality of being in Amway and a system such as WWDB or Network21.

The facts speak for themselves.

Upline Credibility?

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

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

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

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

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

IBOs Talk A Good Game?

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

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

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

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

Better Than Amway?

 One of the humorous things that Amway IBOs say on my blog is if Amway isn't such a great deal, then why don't we offer a better solution? I guess it's not enough that there are facts and experiences posted here so that information seekers can find and make informed decisions about joining or not joining Amway, but we must also suggest better options? Well, I will offer some options. While I am not advising anyone to listen to my thoughts, nor do I think you should act on what you read what's here without doing your own due diligence and your own soul searching, here are my opinions on what may be better than Amway:

1. Simply be a better steward of the money you already have. Many people have enough income but simply channel too much of it to things they don't need. A daily $5 cup of star bucks for example. Disciplined saving and investing. Spending money on standing orders and functions is not a good use of your money unless those materials directly result in more sales and net profits in Amway.

2. Get a second job and set aside a portion for saving and investing. You will not only have more discretionary cash, but also more to be able to set aside for your golden years. Whereas many IBO's are counting on Amway as their retirement plan, but it's odd that nobody seems to retire from Amway. And nobody has been able to name a single diamond who built Amway, "walked away" and enjoys a retirement of wealth and relaxation.

3. Start your own small business. The biggest issue with Amway, in my opinion, is the endless supply of training that uplines sell. It causes most "serious" IBOs to end up with a net loss. You can find a niche product and sell it on ebay or craigslist, unlike Amway products. Another type of small business might be something like learning to do minor household repairs or installing hardwood flooring. These kinds of services are quite common and can be lucrative.

4. Do nothing. Since most business building IBOs lose money, doing nothing, although comical, actually makes you better off than losing money because of functions and standing orders. Sitting on your couch watching a football game is more lucrative than Amway for most people. :)

5. Spend more time with your family. Ironically, many IBOs have this as a goal, but actually spend less time with family because of Amway related activities.

There you have it folks. There are some ideas of what might be better than spending your time and money participating in the Amway business and the Amway motivational organizations. While these are only ideas, only you can decide what is best for you and your family. In whatever you decide to do, I wish you well.

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 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.  It's a tough decision and the subtle pressure that upline applies is very real.

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 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?

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.

The Amway Sales Person?

 Our Amway 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. WTH? 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 and endless number 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 to financial struggles. Our upline wanted IBOs to be out of debt, which is good, but they would also say in the say our Amway 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. WTH? 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 and endless number 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 to 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.me 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.

I'm Gonna Be Rich?

 I was told that Amway can make you rich. Many IBOs say they were told that Amway was not "get rich quick". But obviously, someone must have given them the impression that Amway would eventually make them rich, otherwise, why would anyone join? Why would anyone want to work that hard and embarrass themselves in front to friends and family to promote a business that will more likely get you funny looks than money. But can Amway actually make you rich? While certainly, some people have accumulated wealth because of Amway, but what is the likelihood that you will do so? I've heard the justification that you can make more than your sponsor. Big deal, it is most likely to happen because your sponsor quits. And certainly, those who think they will earn more than the established diamonds are fooling themselves.

Well, yeah, Amway can make you rich if you are a diamond selling voicemail services, books, standing orders and function tickets. Amway can make you rich if you own Amway and sell to millions of IBOs who "buy from themselves". Amway can make you rich if you write a book that millions of IBOs purchase. Amway can make you rich if you can get enough loyal downline to keep purchasing products so that you can get the bonuses. But aside from these few people who I just described, the Amway opportunity is more likely to make you broke, or at least lighter in the pockets.

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

So, can Amway make you rich? I would guess it is possible, but it is also possible for you to win the powerball lottery. It is possible for your to inherit wealth from a long-lost uncle. It's possible. Amway folks only show best case scenario and not the most likely one. It takes normally, over 100 downline IBOs to create a platinumship. And a platinumship occurs less than once in 200 IBOs. And at that level, you likely make little profit or break even. Do you want to defy odds and reach the top 1-2% of Amway IBOs only to break even? Do the math. Ask tough questions. Face reality. Good luck.

The Average Income?

 I was debating with (apparently) an Amway IBO some months ago.  I had quoted the average income of an Amway IBO as $202 a month. I decided to verify this and when I visited Amway.com, I saw that the most recent update stated that the average income of "active" Amway IBOs is $183 a month. However, only 53% of IBOs are active. So, if we were to count the true average income of all IBOs, that income would be under $100 a month. I might add that the average income also includes diamonds, emeralds and crown ambassadors. Imagine that, with all those Amway "gazillionaires", the average income is $183 a month.

But I will concede that averages can be misleading. My net worth would be multiple billions if you averaged my net worth with Bill Gates. I believe that the median income, or the average minus the top and bottom 10%. If we were to do that, it is my belief that the average income would be under $20 a month. When you see the common 6-4-2 plan, or some other similar version, that lowest level is the majority and if these IBOs moved 100 PV, they would earn about $10 a month on average. The top IBOs would be disregarded along with the ones who did nothing.

Many Amway defenders will claim that they are different or that they will stick it out and succeed. And that's fine and dandy. I know that some people succeed in Amway and make decent money. But what is the likelihood of that happening for some prospect who joins today? Someone joining today has effective zero percent chance to succeed when rounding to the nearest whole number. The products are not priced competitively, and the Amway name has a damaged reputation in countries where Amway operates. If you can't recruit downline, you can never achieve the highest levels in Amway. People do try to succeed, that's why newbies are calling everyone they know to try and find people to see the plan.

But even if you can manage to show some plans and sponsor some downline, your chances us success are still close to zero because nearly half of all IBOs do nothing and quit. And the majority of IBOs never sponsor any downline. If you can't recruit downline and the products are overpriced, you have such a huge handicap that it's like trying to swim with lead weights tied to your body. You might swim for a while, but the weight will eventually win and you'll sink. Same with a new IBO trying to build a business.

The magical goal is to achieve residual passive income. And that brings me to the main point. Residual passive income is like chasing the end of a rainbow. You can see it but never touch it. Or it's like Sasquatch (Bigfoot). Nearly everyone has heard about it. Allegedly some people have seen and claimed to have encountered the creature, but there is zero bonafide evidence that they really exist, just like an Amway diamond who built the business, walked away and is living off residual passive income from Amway. Over the years, not one single IBO or Amway defender has been able to name and substantiate a single IBO who's achieved this. I'm still waiting, but not holding my breath.

Freedom?

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

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

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

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

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

The BBB Rating?

 Over the years, I have seen literally hundreds (if not more) blogs and testimonials about Amway. Most of them decry the pitfalls of being an Amway IBO. Most of the complaints cite the fact that Amway in general has higher prices than comparable retailers and the fact that the system consisting of voicemail, books, cds and seminars ate up any profits the IBO may have made and resulted in net losses for most. One particular Amway apologist bemoans the fact that the internet is full of bad testomonials about Amway. The reason why there are so many negative testimonials about Amway is because over the years, thousands, possibly millions either had a bad experience for the reasons I cited above, or personally know of someone who had a bad experience. The bad behavior of some Amway IBOs were apparently not dealt with decisively by Amway, thus a bad reputation marked the Amway name.

Amway defenders will often cite the fact that many IBOs sign up and "do nothing" as their defense to this. But I will easily point out that I haven't seen anyone say they signed up, failed to do anything or order products, quit and started blogging about a bad experience in Amway. These defenders will also compare Amway to the gym where people sign up and "do nothing". Whether true or not, I also do not see people who sign up and "do nothing" complain about not receiving health benefits by simply signing up. It is a very weak defense. Conversely, I have seen numerous accounts of folks like me who did put in effort, some for many years, who did what upline advised and did not see the financial rewards that is promoted in "the plan". I would also guess that most do not sign up and "do nothing". Rather, they likely get started, try to contact and invite, try to sell products, but get overwhelmed by the flawed system, get discouraged, and quit. Maybe they achieve nothing, but I doubt that so many take the time to see the plan, spend money to get started, and then actually "do nothing".

Amway defenders will then try to justify themselves, saying that the better business bureau (BBB) receives few formal complaints about Amway. I will agree with this. Many IBOs never bother to file formal complaints to the BBB or to Amway because in many, probably most cases, the person who quits and may have had a bad experience, was sponsored into the business. The sponsor was often a friend or family member of the IBO who left the business. Many will simply leave and forget the episode and chalk it up to a learning experience in life. Some will complain, but really have to ne venue to voice their remorse about joining. Some of us have found the internet to be quite effective in sharing our experiences and our opinions on why the business did not work. This is what one Amway defender calls the "internet war". What I have pointed out is that critics most often simply point out what the IBOs themselves have done. In many cases, the IBO is his own worst enemy. Afterall, critics didn't deny Amway and Quixtar had a connection, nor did critics make up claims about perfect water, etc.

It would appear that most of the problems has a root in the AMO systems, such as WWDB, BWW, LTD, or N21. Now, not all upline leaders are unethical, but it appears that many are, and new IBOs have no way to identify the good from the bad. It also appears that some of these upline leaders will issue bad advice. Advice that is detrimental to the IBOs, but financially beneficial to themselves, such as telling IBOs to never miss a function, or to buy more cds. In many cases, these unethical uplines do not care about IBO success, their goal is just to move as many support materials as possible, so they can fund their "diamond" lifestyle. Sadly, it is also apparent that the diamond lifestyle may be a facade in some cases. An illusion of wealth portrayed as a recruiting tool.

If you recognize some of these warning signs, ask tough questions of your potential sponsor and visit this or some of the blogs linked to this one for more information.

Amway Makes Me "Nicer"?

 Many Amway IBOs "think" they have become nicer people as a result of their association with other IBOs and because a part of the system they are with advises them to read self-help books. They are also taught that as a side benefit of the Amway business, that they are nicer people. Of course, many IBOs mistakenly think that they started a business not to make money, but to become "nicer".  Businesses exist to make profits.  If not, you don't have a real business.

I certainly agree that some people can benefit from positive books and association with others, but for many, it is not a genuine "nicer" person, but simply a phony persona that is put on in order to recruit potential Amway downlines. That is how my former sponsor appeared to me. Because I had known him for a long time, the "nicer" looked as phony as phony can be. There are many examples of phony niceness that some IBOs profess. Even Amway's biggest defender was apparently called a "cyber bully" by an Amway corporate blogger and some others for making disparaging comments about those with opposing views. Others have resorted to calling people broke or losers simply because they did not agree that Amway was their savior.

On this very blog, there are comments, I assume by IBOs, that make implied or subtle threats. Some of these comments are not subtle at all. In fact, in my blogging experience, it is usually the IBOs and Amway defenders that resort to name calling. I suspect that is because the facts are on the side of the Amway critics. For example, it is a fact that most IBOs never make a dime, even if you don't count the ones who "do nothing". If you look at system IBOs, then the vast majority never make enough to pay their voicemail expenses.

Even the coveted diamond level appears to be a facade, especially seeing diamonds quit, resign and simply walk away from the business without the lifelong passive income. A recent triple diamond's bankruptcy revealed some financials, and it wasn't all that impressive considering the size of his business plus longevity in the business.

So IBOs, are you a nicer person? Is it evident by your words and actions? It doesn't appear to be very clear to me.

Do As I Say?

  When I was an IBO, I recall so many issues that upline brought up that seemed utterly hypocritical, but I guess most down line just miss it and give the diamonds a pass.  One glaring thing was the Amway catalog sold suits and clothes while the diamonds were in designer suits to show off their wealth.  One important thing to note is that many possibly most wealthy people don’t feel a need to show off their wealth.  Thus, product loyalty was one of the core principles of upline teaching but did not apply to the diamonds.  Why?

The diamonds often didn’t seem to follow their own advice as they would say to avoid debt.  I clearly heard those same diamonds (at functions) to say it was okay to pile up debt but only to invest in more Amway tools and functions.  To me this is just shameless conflict of interest advice given by diamonds.  These are the folks who are supposed to be Uber wealthy and only helping down line out of love.  But their actions suggest otherwise, especially to a neutral observer.

Another observation.  Upon closer inspection, any “work” performed by diamonds earn them some form of income.  Open meetings, audios, functions, books and voice mail.  Each of these “training” materials is a form of income for the diamonds and the diamonds push the training as a key to success.  Sadly, there is little success coming from tools and functions.  Just hopes and dreams that are not fulfilled.  

The diamonds count on undying loyalty to make a lot of their income and unfortunately too many down lines put their trust in the upline without question.  

My advice is for IBOs and prospects to look carefully at the Amway disclosures which shows the average incomes and the percentage of success.  I haven’t looked that recently but last time I checked, about one fourth of one percent of IBOS made it to platinum or about one in 400.  And only a tiny fraction of that ever went to reach diamond.  

Why would a serious prospect consider such a poor opportunity?  

Mentors Or Charlatans?

 The really insidious part about some of the LOS leaders, such as the ones I had in WWDB, is that they apparently are cutthroat ruthless businessmen with nice suits and disguised as your mentors and friends. They get you to trust them, and they will tell you that they have your best interest at heart, or that they would never purposely lead you astray. On the surface, you may think this is true but look at their actions and you can easily discern that some of these uplines are absolutely ruthless businessmen who would take every cent from you if they could. I was in WWDB and I have good reasons to believe that they are still doing this, based on a WWDB IBO blog. On this blog, I see all the same teachings today, that I heard as an IBO and some of the same claims such as buying homes in cash. It's scary.

As an IBO, the diamonds would tell you to never miss a function, ever. The only good reason for missing a function was for your own funeral. I recall some cross line IBOs rearranging pre-planned anniversary parties, weddings, and other special family events in the name of being core and attending all functions. Some IBOs actually did quit their jobs to attend functions, and they very well may have done so because some uplines taught this. IBOs were also encouraged and told to go into debt to attend a function. This was okay because it was an investment into your business.

Our group was also strongly encouraged to buy extra cds every week. To be core, you needed to listen to a cd each day and you cannot listen to the same one each day, right? Couples were told to buy their own separate standing orders. Brad Duncan even had a true north tape (cd) that said sponsors were to eat the standing orders for downlines who quit because it was too much trouble to call upline who calls upline who calls upline to cancel a standing order. Oddly enough, they didn't mind upline calling upline calling upline to add a standing order.

In the end, I was lucky enough to have been progressing up the pin ranks, so my losses were not that devastating. I ended up losing in my early months of the business but mostly broke even when I was at 4000 PV. Sadly though, my cross line did not fare so well. I know of one couple who declared bankruptcy. I don't know how much their WWDB involvement contributed to bankruptcy, but I am certain it was a major factor, and I know of two couples who had homes foreclosed, and I believe that their allegiance to WWDB was a factor in those foreclosures. But I guess hey, two WWDB diamonds had homes foreclosed so maybe they were duplicating?

Do not be fooled. The diamonds may have a nice smile and a nice suit, but they are ruthless businessmen who will take your last dime if you allow them to.

Partner Stores?

 I wanted to write this post because I once had a debate with an Amway IBO who was bragging about Amway partner stores. The tag line is that Amway certainly does their due diligence, as well as partner stores as partner stores would not want to associate with Amway if they were a scam, etc. After reading this post, you will see that "partner" stores would be insane not to partner with Amway. Before going into that, maybe someone can explain what due diligence was put into partnering with Worldcom (formerly MCI) and Enron, for selling energy products and services. Surely all those high-priced lawyers must have known about these epic failures (scams)?

Now, when an Amway IBO refers to a partner store, we are talking about a one-way road. What I mean is that Amway sells products for these partner stores, but the partner stores don't sell any Amway products and have nothing to do with Amway other than a business agreement (apparently) to allow Amway IBOs to act as commission only salespeople for these partner stores. Amway IBOs take on all the time and personal expenses of moving partner store products, often at noncompetitive prices, and get a small commission only if they meet a minimum quota (100 pv), which is roughly $300 USD.

Imagine that a partner store basically has the entire Amway sales force potentially selling their products and the partner store can charge whatever they want. The Amway IBOs are often taught to buy from Amway and the catalogs, so the entire sales force often becomes loyal customers as well. And to make the deal even sweeter, the partner stores pay nothing unless the Amway IBO sells at least $300 worth of products, although partner store and Amway products can be commingled. In my way of thinking, it's a no brainer for partner stores to hook up with Amway. They have no risk and potentially a lot of addition sales. High upside and no downside.

And the cherry on the sundae for Amway and the partner stores is that Amway IBOs will also recruit and train other Amway and partner store commission only salespeople at their own time and expense. Amway and partner stores can't possibly lose!! I almost want to go an create Joecool's widgets and become an Amway partner store myself. If Amway people sell my $100 Joecool widgets that cost me $5 to make, I rake in huge profits and the most commission I would pay is about 25%. It's a great deal because Joecool has zero risk. I only pay if the product gets sold. and I don't pay if products don't move. I might even be able to sell Amway IBOs my catalog so they can sell my stuff. It's heads I win and tales they lose for me.

So, if you ever hear about and Amway IBO bragging about how Amway partner stores like Nike, Barnes and Noble or whatever big-name company might "partner" with Amway, you can laugh to yourself and to use Amway's own catch phrase: "Now you know".

Road To Perdition?

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

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

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

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

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

Weird?

 Recently, there's been debate between critics and Amway supporters over an issue regarding a WWDB function called 'Dream Night". A WWDB IBO reported that the function was sold out but did not disclose the amount of a Dream Night ticket. He later posted an article saying that he was sorry for being "negative". Now as a former IBO from WWDB, I was taught to be only positive, That we have too much negative in our lives and that we need the positive.

Now I agree that having only "negatives" in our lives would be detrimental. That eventually, we would be worn down by only negative. But conversely, the teaching of having only positive in your life can be equally damaging. I recall an old Twilight Zone episode where a guy allegedly dies, and he thinks he went to heaven as a man in white came to him and offered to grant him what he wanted. He asked for girls and to be a winner in gambling. Well, the man could never lose a single bet. He won every single time, and he had girls all over him. He found it to be no challenge and found life so mundane and predictable that he asked the man in white if he could lose once in a while or be challenged. The man in white basically said "no" and the man (I believe his name was Rocky) Rocky, said how come heaven was so lame (not verbatim). The man in white proceeded to tell him "what makes you think you're in heaven" and laughed incessantly while the Twilight Zone music ended the show.

Now being positive and having a good attitude is a good idea and probably good for your business but having only positive and shutting out all negatives is a ridiculous thing, and it seems as if WWDB leaders are still teaching it. What happens if your business gets audited? You tell the IRS man you can't speak to him if it's not "positive news"? What if you go to the doctor? You tell him don't let you know what's going on unless it's positive news? If there's a natural disaster in your town, you turn off the news because it's not "positive"? What if your body could not feel pain? Would that be positive for you? It might but the reality is that not feeling pain or having zero stress is likely to be detrimental to your health.

In my informed and experienced opinion, I believe that some Amway and WWDB leaders teach you to shut out negative in your life is because lots and lots and lots of people have negative experiences and things to say about Amway and WWDB. If you doubt me, ask about Greg Duncan, Dave Shores, Brad Wolgamott, Dean Kosage and some others. Ask your sponsor or your upline what happened to these folks. If they tell you nothing or that it's negative, I challenge you to google search and find out for yourself. If your upline still denies or says you should shut out negative, maybe you should find out what they are hiding by shutting out all negative in their lives.

Having only positive in your life is probably "weird". Is that what you want to be?

Funny Tactics?

 I will admit I haven't been accosted by any Amway representatives lately. I'm certain they still exist and I'm certain some of the recruiting tactics used back in the day are still used now. When I had my first brush with Amway, I was outright lied to about attending a "beer bust". I showed up at my friend's house ready for some beer and chips and I get stuck in a stinking Amway meeting. I remember sitting in the meeting still ticked off about it and to make it worse, the presenter also spoke about association and how we would be left behind if we don't join because our friend in Amway would have to associate with Away folks, who were destined to become rich. There was no beer to be had so our gang left and went out to a local pub for some beer. That was my first brush with Amway.

My second brush with Amway was a high school acquaintance who saw me working at my second job at the local market and asked if I was interested in making more money. I told him I was doing just that with a second job. I asked if he was pitching Amway, and he admitted he was. I asked him if actually made any money at it and he admitted he had not. I told him to come back and see me if he was still involved and making money a few months later. I have never seen him again to this day.

I finally did get sucked into Amway when an old friend of mine joined and prospected me. So I ask him if he's made money, and he said no. I also told him to come back and show me later if he makes money. He came back 6 months later and said he was now a direct distributor and making about $1500 to $2000 a month. He said it was easy, and he could show me how to do it. Being a man of my word, I saw the plan and I signed up. I was still a bit skeptical, but I got in and the rest is history. (My story is on this blog)

But what I saw were dishonest Amway tactics. We were told to give half-truths (lies) to prospects. We were told to fake it will we make it (lies) and the upline used all kinds of angles to make Amway seem better than it was. Older but unsuccessful IBOs were told that Amway was more than about money. That we were making lifelong friends and becoming nicer and better people. That were were a small army making the world a better place. (How is the world better when you deceive people to make your upline rich?). We were told that Amway saves and strengthens marriage (even though our upline Diamond got divorced (Wolgamott).

Despite all the tactics and tricks used by our Amway upline, there was little to no success to speak of. Even our former upline Diamond (Harimoto) moved to the mainland (Hawaii is too expensive? Not enough people to recruit?) and it was hard to believe, seeing that he loved the ocean and ocean activities.

Amway sales and revenues have dipped about 25% since 2014 and I can only imagine it will get worse as the antics and tactics used by upline are easily recognizable and ineffective at this point. The internet also made access to information so readily available that prospects can easily find pertinent information and have enough disclosure to make an informed decision about Amway. And that's why Joecool's blog still exists to this day.

The Bait And Switch?

 I believe Amway is used as a bait and switch scam by the diamonds and other higher up pins. They show off luxurious lifestyles, mansions, sports cars, jet skis and other displays of wealth. Most of us familiar with the pitch have heard the lines before. 2-5 years, part time effort, built it right, build it once. Do what we did, and you can have what we have (quotes from a diamond). Early retirement, making major purchases in cash, financial freedom. I mean, who wouldn't want that? Apparently, many do and are willing to give Amway a shot, even if they think their chances might not be good. I believe the same reasoning goes into increased purchases right before the Powerball lottery numbers are released.

But the insidious part of the Amway business is that the diamonds lure people into the business under the pretenses that "anyone can succeed" or that everyone can succeed, but only if you follow their foolproof "system" consisting of cds, voicemail, books, seminars and what some call "the core steps". What is really disgusting about this entire process is that so many good and talented people have come and gone through the system, only to fail, despite doing what they were advised or told to do by upline. My former sponsor for example, sponsored over 100 people and was uber hard core for many years. He peaked at platinum (non Q12) and fell back and has never reached that level again. It definitely was not due to a lack of effort or not doing things right.

My sponsor was not alone. I did what was advised and went up to 4000 PV, only to find that there was no net profit. I wised up and got out of the business shortly after that. The truly sad thing is that many people hang onto Amway because they feel like failures if they leave or that they have no other hope of financial success without Amway. This is also a byproduct of upline teaching that most of us have no chance to be financially successful without Amway. Ironically, the vast majority of people would be no worse for wear or better off without any brush with Amway. Most people snap out of it quickly, but some people bite hard like my former sponsor, who is still toiling away after more than 20 years. What's worse is my sponsor was/is a physician and he is probably farther away from financial freedom than most people in a similar occupation.

So, in summarizing the scam, the diamonds lure people into Amway with great displays of luxury and wealth. They say that anyone and everyone can possibly achieve the same by following their system and by participating in their tools system (cds, books, seminars). What ticks me off is that these hucksters claim all the credit for any tiny amounts of success but blame anything less than success on the individual. They'll call it personal responsibility. These diamonds are liars and cheats. They have never been held accountable for the failures of even the most earnest of IBOs who followed their system. The excuse being that the IBO did not work hard enough, or they didn't do thing exactly right. That is total BS.

The vast majority of people fail in Amway because Amway is designed that way. Their common 6-4-2 plan consists of 79 IBOs. One is a platinum and the rest are not. When you consider that these 79 IBOs are all active and receiving bonuses, this is not a realistic group. A more realistic group will be 200 or more downline IBOs. Many doing little or nothing and the rest scraping up enough PV to make someone a platinum. Thus, one of two hundred is one half of one percent. That's about the going average of success for someone reaching platinum, and this was confirmed on Amway.com. Imagine the rate of success for diamond? It's a tiny fraction of one percent. And that's just to reach diamond, not to maintain it.

Come join Amway and get rich. That's the pitch. The reality is the diamonds and above are getting rich selling their downline training on how to success in Amway. A classic bait and switch scam. The tools business is the "real" business with higher profit margins than Amway products and less people sharing in the profits. Amway is just the front for the tools business to exist. I believe this post clearly explains how Amway is used as a bait and switch scam. Beware!

Residual Income?

 One of the things Amway IBOS like to talk about is ongoing residual income that they believe they can generate thru their Amway business that keeps rolling in, thus allowing an IBO to retire and walk the beaches of the world. But I ask this of Amway defenders. Name one or two diamonds who built their business right and built it once and are now walking the finest beaches of the world while barrels of money rolls in. Over the years not a single Amway supporter has been able to name a single diamond to achieve such a feat.  Conversely, I have seen diamonds quit, resign, and suffer financially at times.

More than likely such a person does not exist. Overall, of these years, do we believe that not a single diamond wanted to retire quietly and privately to live a life of luxury?  Not even one person wanted to live privately and enjoy the fruits of their labor after having built their Amway empire?    I mean when I was an IBO, this is something I wanted.  But upline started teaching about how the business is not about money but about helping others.   It's ironic because most IBOs lost money or make nothing and are in no position to help anyone but themselves. 

More likely with the majority of IBOs doing little or nothing and quitting, diamonds are working harder than anyone but with a flexible schedule instead of a 9-5 job. These diamonds are working the night or the graveyard shift. They are constantly replacing people who quit and forever recruiting fresh young ambitious IBOs because they have to. Think about it. A diamond business is like a sandcastle. It will stand on its own for a while, but the waves will quickly destroy it and soon enough, you'll never know a sandcastle was there. That's how your "residual" income will be. It will be temporary.

The diamond lifestyle seems alluring, but the reality would very likely show a far different lifestyle and peek into the world of a diamond where you ate always running to and from functions and meetings to hold your group together. It not just a glamorous life of luxury that they lead you to believe. If you don't believe me, name a diamond or two who's living the high life on residual income after walking away from their Amway business. These diamonds are like Sasquatch. Many have seen or heard about them but there is no real evidence that they exist.

Building Wealth Part Time?

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

If you listen to one (1) cd/audio per day as recommended by upline and read one of their "success" books 15 minutes each day, you already close to nine hours of time used and neither of these activities produces any income for your Amway business. In fact, both activities cost you money and produce no tangible result and no income. If you spend another 15 minutes a day contacting people, you are close to 12 hours per week. Where will you find additional time to show the plan and to expand your name and contact list? What about servicing customers, at least for IBOs who actually may have some customers. If you spend 8-12 hours of non income producing activities, how will that turn into financial freedom? The answer is simple. It doesn't. That activity primarily benefits your upline diamond who profits from selling you cds/audios or function tickets, or voicemail.

What about attending meetings and functions? These are also non income producing activities. It's no wonder the vast majority of IBOs don't make money. Their upline has them running around participating in activities that produce no income for their businesses. Ironically, there non income producing activities such as listening to a cd, produces a lot of income for certain uplines who produce and sell them. To me, it is just an elaborate game of bait and switch played by upline. Attending functions and meetings are promoted as learning activities but again, how does it benefit an IBO to spend money instead of making money?

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

But IBOs and information seekers, do not be fooled into thinking that you will create a financial empire by working 8-12 hours a week. Look at your return on investment and/or your profits and losses at the end of the month. What you will see is a consistent net loss because of the system and no profit, also because of the system.

Is Lying Necessary For Success?

 The first time I was prospected for Amway, I was in college. I actually didn't know much about Amway but I had somehow formed a negative opinion of it. Needless to say, when I was invited to a beer bust and it turned instead to be an Amway meeting, my impression of Amway wasn't that good. Some years later, I eventually did join because a close friend of mine had achieved direct distributor (now called platinum) and he had assured me that it could be done and that he would make sure that I would also achieve it. I did achieve a level just below platinum (4000 PV), but I quit for several reasons. First of all, I didn't make a net profit as the expenses for tools ate up my profits. Secondly, the more I progressed in the business, the more and more my upline wanted control of my life. For example, we were told that we should check upline before getting married, buying a car, or even having children, etc. I thought that was very strange and I eventually left the business for good.

But in the US at least, I believe Amway's name to be so battered that an IBO cannot sponsor downline and build a business without lies and deception. There are hoards of stories confirming testimony that lies and deceit are common in prospecting potential IBOs. This was extremely rampant when Amway changed their name to Quixtar. IBOs would deny the connection or IBOs would say they are with network 21 or WWDB and claim something ridiculous such as Amway simply being their supplier. The promotion of perfect water also brought on silly antics about a $50 case of water being capable of performing miracles. If the opportunity could stand on its own merits, then IBOs would not have to resort to such desperate measures which include lies and deception.

Even the Amway presentation if often filled with deception and lies. I remember seeing the presentation and they said shopping through Amway, an IBO would save 30% over local retailers. When I actually saw the catalogs, I wondered where are the savings?? An open minded price comparison will easily show that Amway products are not cheaper than a retailer like WalMart. It's not possible when you consider that Amway's bonuses must be a part of their product price.

The 6-4-2 plan or similar variations are made to sound easy and the presenter talked about lifelong residual willable income, which I also find to be deceptive if not an outright lie. The presenter never mentions that only about 1 in 400 ever reach the platinum level, where allegedly you begin to break even as an IBO if you are consuming training and tools.

But can Amway be successfully promoted without lies and deception? It is my opinion that an IBO has no chance of building a business by being completely upfront and honest about Amway and about being an IBO. Even with lies and deceit, many IBOs still cannot get people to see the plan or to buy products. It is my opinion that overall, very little Amway products are sold to non IBOs. So if you cannot sell products and you cannot get people to see the plan, you cannot build a business and if you are purchasing tools, you are simply digging yourself a financial hole that will only grow larger as time passes. The cost of 100 PV (about $300) is already more than what most families and/or singles spend in a month on household products. This means that most people simply cannot sustain themselves in the business and it explains why most IBOs drop out in the first year.

It is why lies and/or deception are needed for an IBO to have a chance at promoting and building an Amway business. Because the truth is not pretty and more than likely, will not work for building an Amway business.

Dreams Or Fantasies?

 One of the things that Amway leaders use to attract new IBOs is to talk about the dreams that these folks have. They may talk about how having a job will wear you out and dreams that you once had as a child or young adult gets suppressed and/or completely forgotten. They try to revive some of these dreams in the hopes that they can convince prospects that Amway is the only way, or the easiest or best way to accomplish these dreams. They also try to instill the notion that people can choose to succeed in Amway. Being that success in Amway has so many variables out of the direct control of an IBO, nobody can simply choose to make it big in Amway any more than they can choose to win the lottery. And by the way, the chances of going diamond and maintaining it is about as remote as winning a lottery.

What is somewhat cruel is reviving dreams that for many, will never come to fruition, no matter how much work is done, and no matter how many tools are consumed. There are many instances where no matter how big the dream, it will never come to pass because of physical and financial limitations. For example, as a child, many of us had dreams of playing professional football, hockey or basketball, and living in the glory of winning. However, no matter how many hours you put in and no matter how hard you work, the vast majority of people will never be pro athletes. And even out of the ones who become pro athletes, very few are considered "elite".

Yet the Amway promoters will have people believe that just buying a few products and selling a few products and 2-5 years of "hard" work, people will join the financially elite in the world. As if home care, beauty and nutritional products moved from person to person is going to make you achieve your dreams. That you will quit your jobs and walk the beaches of the world while the cash rolls in by the barrel full. Sadly, many young people become attracted to a proposition that allows them a shortcut to retirement instead of working until age 62 or whatever the standard retirement age is. They are basically promoting false hopes and promises to the vast majority of people who get involved. I believe those who are deemed as "dream stealers" might be doing their family and friends a favor by stealing their dream, which will not come to pass anyway.

With about 1 out of 400 IBOs reaching platinum (the alleged break even point) and about 1 in 20,000 IBOs reaching diamond, the dream is a stretch indeed. Even for the select few who can overcome major challenges and hurdles, maintaining their status often becomes impossible and not worthwhile (many diamonds have quit).
Also, if you do make it, you will leave behind a trail of people who could not or did not come close to that level of success. It means that in many cases, your success will come at the expense of those you sponsor. It is why many claim that Amway is a legal pyramid.

Having dreams and goals is a good thing. But do you want to accomplish your ultimate dream by hurting (financially) those who trusted you and agreed to be your downline? Is it your dream to go diamond and have 500 to 1000 or more downline IBOs losing money? Is it your dream to be wealthy by exploiting people who trust you and believe that they can achieve the same level of success, when the opposite is true?

What is your dream? Are you willing to hurt others to achieve it?  And is it a dream (long term goal) or simple a fantasy?

Sasquatch And Amway Retirees?

 I was watching a show on Discovery channel the other night about Bigfoot/Sasquatch. It was followed by a show about evidence of UFOs. It made me start to think about these phenomena. It seems like everyone has heard about or knows something about Sasquatch (Big foot) and/or UFOs. There are many documentaries showing pictures and evidence of both, but to date, there is no bonafide evidence that these things exist. You'd think that a body or bones of a Sasquatch would turn up somewhere, sooner or later, or we would find compelling evidence of a spaceship from another galaxy.

It sounds just like stories of people who built a diamond ship, then "walked away" from their businesses, retired in the lap of luxury and did nothing while the money kept rolling in. I heard numerous scenarios about this happening, but looking back, all the diamonds kept working and since Joecool left the business, the diamond either kept working, or quit or got terminated. But I never heard anyone name some higher up Amway pin who built a business, and then walked away from it to travel the beaches of the world while hundreds of thousands of dollars kept rolling in. Many have heard about it but nobody seems to be able to name any of these folks. I mean after over 50 years in existence, you'd think some of these folks would exist, especially when it seems to be a selling point of the business for many AMOs.

It is my opinion that Sasquatch, UFOs and retired Amway's diamonds (with significant Amway income) are non existent. If these folks existed, there should be at least some shred of evidence of it. The lack of evidence indicates to me that it is either non existent or so rare that nobody can display bonafide proof. I mean there aren't any T-Rexs roaming the earth anymore but fossil evidence proves that they existed at one time.

Keeping in mind that the Amway business has a high attrition rate, coupled with low sales to non IBOs and you can easily conclude that residual and significant income is nearly impossible. An Amway business that is left alone will deteriorate like a sandcastle does as the waves wash it away. You (in theory) could possible walk away from an Amway business for a while and collect some income, but you won't be collecting enough income to live the "diamond lifestyle" as portrayed by diamonds in their functions and open meetings. I'm not even sure that active diamonds can comfortably afford that lifestyle even when building their businesses. There is ample evidence to support my claim. Diamonds losing homes to foreclosure, former diamonds revealing secrets about their income. If you really believe you can walk away from your Amway business and collect untold wealth, I have a bridge in Brooklyn to sell you. :-)

Less Time And Money?

 One of the things that uplines do when recruiting new IBOs is to talk about how jobs are dead end, that someday you may be fired, that you have no control of a job, or that you are never paid what you are worth. They convince you that working a job is a crime and tha your boss probably works the longest hours. They may even say that those who make good money working a job often works so much that they don't have time to enjoy it. My former upline used to say that true freedom is the control of time and money. 

What I was also told that that in the real world, generally the guys who have enough money are usually so busy working that they don't have time. Or that a broke guy who's got time on his hands is broke so he can't do much of anything. That's when they would convince prospects that only through Amway can you have both. You can have both time and money. You build it right and build it once, and the (Amway) business will pay you for the rest of your life. That's how it was presented to me and looking back, it was a total lie. I have a challenge for any IBO or Amway defender. Amway's been around for more than 50 years. Can anyone name a dozen people who have actually built an Amway business and then stopped workig it but continued to collect a significant income that was actually passed onto their heirs? Can anyone name even one or two? Keep in mind that tens of millions of people have come and gone through the business. Also keep in mind that Amway doesn't make these claims. Maybe someone should ask Amway?

It makes me wonder why crown ambassadors don't even walk away and collect money forever. These crown ambassadors are all old and have been around forever yet they continue to work their groups and attend all the functions. Sure, maybe their day to day lives aren't as busy as a 9-5 employee with young kids, but still it makes me wonder why not even double diamonds and above (as far as I know) have exercised the option to walk away and enjoy mountains of residual cash rolling in. I also wonder why there are stories of diamonds quitting and resigning if there was an option to walk away and enjoy lifelong residual income. We also know that diamonds fall out of qualification and we know that many platinums fall out of quallification, providing ample evidence that an Amway business is unstable and that without constant attention, your business is likely to fall apart.

Let me close with this. We know that a typical platinum business has about 100 or more downline IBOs. That doesn't include those who quit. Thus a platinum is already in the top 1% of all Amway businesses and that platinums might not even make that much net income when considering that platinums have many expenses which may include eating losses on tools refunds for the upline diamonds.

Yes, true financial freedom is having complete control of time and money. The problem is that very few people ever achieve financial freedom but it would appear that even fewer Amway business owners achieve that same financial freedom because of the Amway opportunity. Also, showing pictures of mansions and sports cars is not proof of financial freedom.

Don't Quit Your J-O-B?

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

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

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

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

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

Right Around The Corner?

  When I was an Amway IBO, I heard the saying over and over. Never quit, success might be right around the corner. There were countless stories by diamonds and emeralds of how they were on the verge of quitting but stuck it out and somehow "made it". I also heard stories about why people should not quit because even if you were told "no" a thousand times, the next prospect might say "yes" and turn your entire business around. This mindset is almost like a gambler who thinks the next hand or the next roll of the dice will suddenly start the beginning of a good run.  Too often, it is not.

I believe these are all heartfelt stories. However, I believe that many stories are embellished and made to order. Or in other words, made to fit a standing order. If you listen carefully to many of the standing orders, you will notice that the higher pins were consistently sponsoring people and generally achieved the platinum level in 18 months or less. There are exceptions of course, but the majority of stories I heard seem to have had the same theme. Those who were destined for success achieved some significant level in less than 2 years.

But for IBOs and new recruits, if you aren't constantly bringing in new people to the open meetings, and sponsoring new people, then you are very unlikely to ever achieve much in Amway. Statistically, less than one half of one percent ever reach platinum. Thus, if you are unable to grow your organization or group, then you are unlikely to be that one who "makes it". Success is not around the corner as some uplines will have you believe. If you take 100 "no's" and then someone finally says "yes" then chances are that person who said yes, will "do nothing", or do little and wind-up quitting. Chances are that person won't sponsor anyone or show anyone the plan. Chances are that person won't even be in the business a year later.

It might be a good idea for IBOs to take a step back and take an unbiased look at their business and their business activities. Is your group growing consistently? Is your volume increasing each month? Are you able to get people interested in seeing the plan on a consistent basis? If you answered "no" to any of these points, then you are unlikely to progress and achieve in the Amway business.

One important thing for people to note is that there are many ways to achieve your financial goals and dreams. Amway is probably not the best vehicle for most. The numbers speak for themselves. If less than one half of one percent ever reach platinum, where allegedly, IBOs finally see a profit, then I would say your chances of success are better elsewhere, even if that is a second job. The average "active" IBO earns about $200 a month according to Amway. Considering all IBOs, then the average income is probably about $100 a month. You can earn much more than that working 4-5 hours a week at minimum wage.

Is success right around the corner? I doubt it.

The Real Problem?

 One of the reasons I started blogging was to share my personal experiences in Amway and WWDB, and to allow information seekers and prospects to get an insight into what I see as potential and real problems with the Amway opportunity. In many of my blog articles, you will notice that many of the problems I have identified with the Amway opportunity are more closely ties to a motivational group such as WWDB, BWW, or Network 21. But Amway apparently has allowed many bad practices to go unchecked, thus they are not completely guiltless in the abuse of downline over the years.

Too often, the Amway opportunity is misrepresented by IBOs. For example, I have heard so many times, that Amway is a franchise opportunity, which is not true. I have also heard so many times that an average Joe can work for 2-5 years and create a willable and residual income that will allow you to not have a job, and possibly to allow you to enjoy untold wealth and luxury. I don't believe this is true for the vast majority of people who were sold on the Amway opportunity. Very few people make any money from Amway and out of those who do, the profits are also from tools and functions and not exclusively from Amway.

The bigger problem is the promotion of motivational tools as being the key to success in Amway. Although technically "optional", most uplines will promote the tools as necessary and that an IBO would be insane to build a business without tools. Thus, many IBOs spend money on tools and sadly, most IBOs never make enough money in Amway to cover the cost of their tools. In fact, over a number of years, I have heard of people losing tens of thousands of dollars (or more) to the tools systems. And once you start participating in the system, the decision to quit can be difficult because of the time and money that an IBO may have already invested. Also, the thought that maybe upline is right and that persistence will pay off. Well, there is no unbiased documentation that persistence and hard work (and applying the system) actually works.

Amway defenders like to point out that all the new platinums and diamonds used the system but FAIL to point out that the rest of the IBO force who may have worked just as hard simply ended up with business losses. Amway defenders also fail to point out that perhaps a larger number of platinums and diamonds may have failed to re-qualify at that level. So much for willable and residual income. By the way, of residual income is a benefit of the Amway business, why can't I find anything from the Amway corporation to confirm this?

I could go on and on, but lastly for now, I think it's a bit shady for diamonds to show off fancy cars or mansions as a way to flaunt their alleged success in Amway. I would prefer the traditional manner of reviewing business tax returns. Showing a copy of a check means nothing because business expenses may have exceeded the amount of the check, leaving an IBO with a net loss. But in the Amway opportunity, it is common practice for IBOs to hide their income or to show a diamond's Mercedes as proof of income. It doesn't add up for me and I would urge information seekers and prospects to scrutinize someone who tries to impress you in this manner.

Those are some of the real problems I see with Amway.

Joecool On Vacation For 2 Weeks?

I'll be on vacation for the next two weeks, taking a tour through Japan, Korea and Thailand.   No Amway income or freedom needed.  All funded by my own person investments which allows me to travel frequently and pretty much anywhere I want.   

The post below is the original post on this blog.  It was written in 2009.  But the details still apply today.  I'll see you all in 2 weeks! 

Recently, I've had comments left here, some deleted and some published, with IBOs and/or Amway supporters calling me names, and accusing me of "bashing" Amway. I believe that these folks are misguided. If you carefully read my blog posts, many are not about Amway the corporation, but are aimed at the abusive practices of certain AQMOs, or the groups that sell their system of tapes, cds, books, KATE, and functions. I believe that Amway the corporation is somewhat culpable as they did not reign in the abusers, but still, it is certain LOSs who teach bad business practices and give IBOs bad advice, which incidentally, costs the IBOs money.

Joecool officially quit Amway sometime in 1998. The name quixtar was already floating around. I quit, got on with my life and basically forgot about Amway. But more and more, I discovered that my upline leaders had been liars and had seriously misrepresented the business. I am from the era where upline leaders told us that nobody made a cent from the tools, which is now known as a lie. They told us that diamonds pay cash for nearly everything, which includes homes. We know that is a lie. Based on what I heard about my sponsor, I believe it is still taught as my sponsor, who is a physician, is still renting a small home in a rural area on Oahu. I started to participate on Quixtar blog to learn more about the tool scam, and I started blogging to be able to help others learn about what I had discovered. My blog gets about three to four thousand visitors each month, although there are many repeat visitors. I have helped many people over the years who benefited by the experiences and information that I have shared. I do not receive any financial compensation for blogging.

For those who call Joecool a loser, let me talk about some things I have accomplished in life sine I quit Amway. I received several promotions at work, and recently started a new job where I was offered a pretty nice salary. I own my home (I did not pay in cash, LOL). I bowled a 300 game, made a hole in one, and ran several marathons. I'm just an average middle class citizen in Hawaii. I started Joecool's blog in 2006 or so. My old blog has been deleted as the host did not maintain the site well and I eventually got hacked and sabotaged. I started this current site on blogger in late 2009.

I am not here to "steal" anyone's dream. I am not here to "bash" Amway. But Amway, the business opportunity is one where most people do not make money to begin with. Add in the expenses for tapes, cds, voicemail and functions and you have almost a 100% chance of failure. Yet some upline leaders will promote Amway as a easy shortcut to retirement with a surefire chance of success if you dedicate to the system. But the system does not work. There is no bonafide evidence that the system works. This is what Joecool's blog is about - primarily the systems and its problems.