In one of my very recent posts, there was discussion about how in theory, someone could make a living selling Amway products. But that person would have to be working nearly full time, servicing customers and prospecting for new customers. My comment was that anyone who was that talented in sales could form a much more lucrative career selling cars or houses if that had that much accumulated sales acumen. Let's face it, sales is a tough business. That's why some uplines train their downline to ask prospects if they like sales. And whether the prospects likes or hates making sales, the answer is "great, then Amway is perfect for you". If the prospect likes sales, then you guide them towards sales and those that do not, are guided into the "buy from yourself" group.
The inherent problem with Amway, in my opinion, is that the business is set up where you cannot reach the high levels such as emerald or diamond, without an emphasis on recruiting downline. It's possible for someone to reach platinum or ruby levels in Amway because they are based on PV volume and downline "legs" are of no consequence. However, as far as I know, there are no long time sustained platinums or rubies based only on sales volume without downline. They might exist, but they are likely more like sasquatch or UFOs. People have heard about them, but there is no conclusive proof that they exist.
Back to sales, the challenge for Amway IBOs and prospects, is that they are selling generic in nature products (Amway stuff) for premium prices. Selling little or un known stuff for high prices makes for a difficult challenge in sales. Even premium products for premium prices can be challenging, but at least you get premium commissions. Not so in Amway with the multi tiered layers of upline and downline. And to make it worse, your spot in the hierarchy, including your upline, is all based on who signed up first. Do you know how ridiculous this sounds in real life? Especially when upline generally counsels downline on business and even marriage issues at times?
Let's say a 50 year old well established businessman with a good marriage joined and is somewhere downline of 20 something year olds. That businessman is expected to take business and life advice from young kids because they signed up before him. Yes, this is part of the Amway business, as taught by the LOSs such as WWDB, BWW, N21, etc. Of course teachings might have variations and some groups might show a little more common sense, but the hierarchy exists in all Amway LOS, as far as I know. For these and other reasons which we'll explore later, it makes Amway a very tough sell for anyone.
7 comments:
Thanks Joe for putting a name to it - a tough sell. And for the crux of the reason, which is generic in nature products at premium prices.
Now there are passionate defenders who would make an endless long debate on the claim of generic products for premium prices, to claim the products are worth it. It is a bit subjective, but they'll make a long debate out of it, cherry picking products and doing long write ups that are tedious to verify and follow. As if repeating that spiel, will easily sway people, every time people bulk at paying more to replace perfectly fine products that already work.
The good news for anybody who is confused, is that the question of a tough sell is easy to answer as it boils down to two questions:
1) Is the name of the brand an asset or a liability? When approaching prospects, is mentioning the name of the brand good or bad? Can you wear merchandise like a branded base ball cap while meeting prospects? Or do you have to hide the name for as long as possible out of concern that it will put people off? Do you have to change the subject if they guess the name, or do you lead conversations with the name?
2) When people fail at the business for whatever reason, do they keep on buying the products for themselves? Or do the excitement regarding the products evaporate coincidentally at about the same time when they decide the business is not for them?
The answer to the first one we all know. Similarly, for the second one, if Amway retained only a quarter of all quitting distributors, just imagine how widespread the products would have been!
Everybody who is confused should know this little secret about business: If you represent a brand you are too embarrassed to mention up front to prospects, or if your ex colleagues and ex business partners stop using the brand when not paid to use it, you are distributing the wrong brand, and what your are selling is going to be very tough!
kawaaikat, spot on.
I recall a debate with that Amway sychophant, IBOFB. I recall how he made a dissertation about why Amway toilet paper was superior to Charmin or some other brand, and that the Amway toilet paper was worth the premium price.
The rest of the forum said who cares? The stuff you get at WalMart is just as good/comparable to Amway TP and was cheaper and a lot of stuff at WalMart is just as good or comparable, and for the most part, cheaper.
Let's consider something else. If you are in a position to afford it, on what occasions will you pay a premium price for a premium product or service? Here are five examples:
1) You buy a piece of fine jewelry for your wife or loved one that will be a permanent part of your family's treasure.
2) You buy a beautiful hunting rifle with engraving, and a buttstock of polished Circassian walnut, that you will leave to your son.
3) You buy an antique carved desk of solid mahogany with marble inlay.
4) You buy a top-of-the-line Italian sports car, from one of the renowned Italian automobile makers.
5) You pay an expensive professional artistic restorer to restore a valuable old painting that you own.
All of these objects or services command a premium price, but you will pay it if you have the cash and you really want the thing. But paying premium prices for things that you CAN DO WITHOUT, or that you only want for TEMPORARY CONVENIENCE, or that are not of especially high quality, is something that most sensible persons do not do.
Premium toilet paper? Premium water? Who the hell ever heard of such things? The Amway notion that generic-quality vitamin pills and cosmetics are in the same "premium" category as the things mentioned above is TOTALLY INSANE.
IBOFB was a paid flack for Amway, so he had to defend it no matter what. Amway was paying him. So he had to come up with some reason for arguing that Amway toilet paper was "high quality," and therefore it had to have a premium price. I'm sure IBOFB actually felt like a complete jackass when he did that, but after all it was his job.
Funny story, when IBOFB was a sychophant for Amway, he labeled himself as in internet expert, and well as an established businessman. He also said he had studied psychology quite extensively.
Fast forward to the covid pandemic. I looked up with face book profile during covid as I was curious what he was up to. LOL, he was arguing about covid with people on the internet and his profile had listed himself as a epidemiologist. I guess his expertise depends on what he's pimping online. He was a known liar so I guess there's no surprise there. :)
Yip thanks Joe, I was thinking of IBOFB when I referred to the endless stories! Dissertation is the right word. As if consumers would care to read dissertations when making a purchase decision on toilet paper.
Anonymous 29 Jan made a few good points about what premium is.
It's an interesting thought exercise, to imagine what if the products were premium.
If they were perceived as premium by people other than those who distribute them, we would associate and see the products in bathrooms and kitchen spaces of fancy hotels, conference venues, golf courses and high end restaurants. These institutions would be prime hunting grounds for distributors. Wealthy people who are not distributors would buy and display the products prominently, to signal that they appreciate quality, craftsmanship and style (soap and toilet paper remember). Or they could advertise in glossy magazines. Oh wait, sorry I forgot, they're not allowed to advertise.
Anyway, distributors would wear Amway caps and t-shirts (or ties if they insist on dressing formally) when inviting people to come and listen to the business plan. Nobody would have to ask is it Amway and receive an evasive answer in return, the distributor would lead with the name. Because being associated with a premium brand is an asset.
Just imagine.
Joe, I also heard that he was trying to set up his own MLM somewhere in Scandinavia.
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