Monday, May 13, 2024

Not Working Hard Enough?

 I believe there's a gigantic myth that people who ultimately fail in Amway simply didn't work hard enough, or didn't put in enough time, and ended up quitting too early. Based on personal experience and observations of others, I truly believe that to be NOT true. Now I agree that many IBOs do little or nothing, but generally, these folks don't complain and their losses are generally limited to the sign up fee or kit. Most do not seek refunds, file complaints and simply chalk up the loss as a learning experience.  

I myself, put in some months of very dedicated work towards building a business. I had a decent sized group and was headed for platinum. But the fact of the matter is that even though my group was growing, I wasn't making a net profit. I seriously doubt that any of my downline made a net profit, primarily because of the business and tools expenses. I drove the miles, I showed the plan and I attended all the meetings and functions. I did what I was advised by my upline. My net profit at 4000 PV was little to nothing with a net loss when all the business expenses were factored i such as gas money, functions, standing orders, etc.  

My upline also did a lot of work, and he put in the hours, drove the miles and attended everything. He told me his net profit was not any of my business. (If you hear that, it's a huge red flag). I suspect my upline and sponsor also broke even or lost money despite working very hard and doing what they were advised to. I later read the assessment made by the Wisconsin attorney general Bruce Craig, who examined the tax returns of (I believe it was platinums/direct distributors) of IBOs in his state and they averaged a net annual loss of $900. While the study is a bit dated, the business has not really changed except that there are more expenses and tools associated with the business today, than back when the study occured.  

I also question the validity of Amway defenders who claim that people did not work hard enough or did not run their business properly. I seriously doubt that anyone has done a comprehenseive study of people who actually made an effort to build an Amway business, to determine why they may not have the success they desired. However, I can make my own conclusions. Many IBOs are taught to buy from themselves with little sales. They're taught to buy tools, even when they aren't making progress in the business. People who are struggling in Amway are often told that they need to sponsor more people, show more plans. (A struggling business opens new stores to improve business?).

In my opinion, hard work and success in Amway have little relationship. Sure, there is work needed. But working hard doesn't assure you of anything. You need to be able to develop a following. Just working hard has nothing to do with long term sustainable success. There are plenty of examples of hard workers who lost money. What I believe happens, is that IBOs get excited, get started and contact people and show plans. But Amway has the reputation of "pyramid" or "scam" and people quickly get discouraged and stop building the business. Those who try to sell Amway goods find that a month's supply of multi vitamins ($80) double x is a tough sell, or $50 cases of bottled water. They also get discouraged and quit.  

Only those who can somehow recruit and replace those quit end up having a chance to grow their group large enough to sell them tools, which then makes selling Amway products less important. But I don't buy for a minute that people simply do not succeed in Amway primarily because they don't work hard or smart enough. I challenge anyone to prove that a lack of work is the reason for Amway failure. The system is designed for only a few to succeed. Examine the 6-4-2, there is 1 platinum and 78 downline, and that's assuming everyone "did some work".

IBOs fail in vast quantities, but not because they don't do any work.

4 comments:

  1. Amway is designed to fail for low-level IBOs, and to be only marginally profitable for the various big pins above them in the chain. Since the sale of Amway products is treated as nothing but an unimportant sideline, the major emphasis is on recruitment of new down-line IBOs.

    The job of an up-line is to keep the down-line IBOs in the business for as long as possible. If down-line is not making money, up-line has to psych them out with ideas that will allow them to ignore financial losses. Those include "becoming a better person," or "helping others," or "learning the secrets of the business from tools and meetings and functions."

    People fall for this crap for a little while, but sooner or later they drop out. Up-line's job then is to replace them with new suckers.

    The big problem that Amway faces to today is the massive flood of negative information that is available on the internet about the real truth of Amway's lies and deceptions. Recruiting a new IBO into the Amway "plan" is as difficult as finding a gold nugget in the street.

    ReplyDelete
  2. We quit building the business, but not our ibo ship as we still buy products. I remember, when we quit building the business after several years in it actively, we got a survey from Amway. We were always profitable, however not enough to justify staying in the business based on time we spent. After we filled the so called survey with our opinions especially about the games and politics uplines played and sent it, we got a response from Amway that people who quit building are the ones who do not do required steps, to be successful. I think they just blame it on the ibo no matter what. Don't understand the purpose of the survey, if the corporation is closed minded. Happy that we are done with that phase of our lives.

    ReplyDelete
  3. Was the survey from Amway in Ada, Michigan, or was it from your AMO subsystem?

    My own feeling is that the official Amway Corporation would not send a response like that to you. It's patronizing and insulting, especially in view of the fact that you were actually making a profit in the business. It seems more likely that this "survey" came from your AMO up-line, and was a way of reacting negatively to your leaving.

    ReplyDelete