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.

Behind The Smoke And Mirrors?

There is a book called "Amway Motivational Organization - Behind the Smoke and Mirrors", written by Ruth Carter in 1999. Ruth Carter was an IBO and also worked as an employee of a diamond. Her close and personal insight into the life and finances of a diamond is quite horrifying when you see the details. Based on my observations and years of blogging experience, I believe that this diamond as described in this book, is more typical than not. I believe this because this diamond had a nice income. but also, was living in debt. Basically, the diamond in the book (not identified) lived a lifestyle to portray wealth, but behind the illusion of wealth was a pile of debt.

This diamond operated in the mid 1990's, the heyday of the AMO abuse. While Amway pundits will make claims such as the story is a bit dated, I still say the story is quite valid because not much has changed in the business. Yes, online shipping replaced the call in and pick up method of delivering goods, and for some groups, the voicemail system changed, but the diamonds in the business still portray wealth. My old LOS, WWDB, still has a function called Dream Night, where the diamonds parade around and show off mansions, sports cars, jet skis and other luxuries. The diamonds still make claims of buying bit ticket items in cash, and they apparently still have the nerve to teach that the Amway opportunity can save your marriage.

The diamond in the book had a nice home, a couple of fancy cars and a nice income. The diamond in the book had a gross income of just over 3 million dollars. But after business expenses, this diamond had a net of $323,000, with only $96,000 of the income coming from Amway. For the Amway defenders who like to cite religion and call Amway a God pleasing business, I will note that this diamond only had $10,000 of their income given to charity. This diamond had the fancy suits, a couple of nice cars and a nice home. This diamond also had a mortgage and a home with little equity. The diamond had not paid their income taxes for several years and this diamond also had credit card debts in the hundreds of thousands.

How can someone who has achieved the Amway pinnacle of success be in debt? Simple, by portraying a illusion of wealth that cannot be sustained on the income generated by Amway volume and tools sales. An income of $323,000 is certainly nice, and more than most people will ever achieve. But the lifestyle they live might require a million dollar a year income or more. Amway reports that the average diamond earns about $147,0000 a year. I might add that a diamond's monthly income may not be that great as much of the income of a diamond comes from annual bonuses.

So why do diamonds live a lifestyle that they cannot sustain? It is my guess that diamonds need to keep recruiting new IBOs in order to maintain what they have. Thus, they portray an easy lifestyle with no job and tons of luxuries. Some diamonds show off more than others. But in order to entice prospects, you need to show things that most people cannot attain with a job. I believe it is why there have been other signs of financial trouble in diamond land. Other diamonds have had homes foreclosed. A prominent triple diamond was in bankruptcy (chapter 7) proceedings, and a host of diamonds were selling off mansions in a bad real estate market. The signs are there. You can believe your own eyes of continue to deny what appears to be the norm in this business.

Amway Motivational Organizations and their diamonds are creating illusions of wealth, behind the smoke and mirrors, I suspect many of them are in financial difficulty, living month to month and bordering on massive debts. The evidence of there. The question is whether or not you believe it.

No Negatives?

 One of the silly things taught by Amway uplines is for IBOs to avoid anything negative including news and current events. This was common practice when I was an IBO, and apparently, still taught by some leaders and groups. Don't read the newspaper, don't watch TV, and avoid people in general, who are negative about the Amway business. My upline would say that the world is too negative so our minds needed to be filtered with positive thoughts so that we can flourish in the Amway business. I believe this is one of the reasons why some people associate Amway and the AMOs (Amway Motivational Organizations) as cults. Tell people how they should think and then bombard them with only happy thoughts about Amway. Everything else is "negative" and should be filtered out.

Sadly, many Amway IBOs buy into this and start avoiding family and friends simply because they may not view Amway in a positive light. Certainly, some IBOs don't shut out family and friends, but it seems that enough of them do, at least while they are involved in building a big business. It was my experience, and I still see evidence that this is not uncommon practice even today. If these AMOs were churning out new and sustainable success stories, we would probably not be talking about this but instead, IBOs and prospects get used and abused and spit out by the system, all under the guise of being mentored by uplines. Most IBOs, even those who put in an earnest effort end up with a net loss, despite their dedication to the system and adherence to upline advice. I don't know of anyone who has been able to name more than a dozen new diamonds from the US in the last 20+ years or so. It sure looks like Amway in the US and Canada is shrinking, save for some pockets and areas where there is the appearance of "growth".

I would point out the functions as evidence of shrinkage. My former sponsor told me of a Free Enterprise Day function (FED) where IBOs filled the (at the time) Seattle King Dome. 50,000+ IBOs in attendance. I also attended a family reunion function at the Rose Garden in Portland where there were 15 - 20,000 IBOs in attendance. Dream Night was held in venues that sat about 2500 people and more and more, we are seeing smaller venues for these types of functions. Maybe people are simply more aware of what being an IBO entails and simply avoid it? Maybe it's just a coincidence?

But hopefully, someone out there who reads this will understand that avoiding all negative is a silly thing to teach. Unless you live in some Utopian society, there will always be some negative. That's just life. Avoiding the news or only taking in positive can make you apathetic. How would you be able to vote or know what the current events are? Do you rely on your upline for this? Are you living in an Amway/AMO world where you only associate with IBOs and "happy" people? Do you argue and attack opposing views? If you're about avoiding negative, you should take this message to heart and seriously think about what you are being taught by your (well compensated) mentors.

Ruthless?

 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 crossline 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 crossline 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.

Excuses Excuses?

 I've been a blogger now for a number of years. I've debated with Amway apologists and they ultimately resort to excuses and/or personal attacks when they run out of defenses. Food for thought, when you have to make excuses about why your opportunity isn't a scam or a pyramid scheme, that should already make you stop and think for a minute. The easy excuse is to say that "my group isn't like that". Yet I see testimonies and statements that indicate to me that things have not changed, even in all the years since I left the Amway business myself.

Even the product's prices need to be justified. That there is concentration or other factors that really make Amway stuff a better value. Strange how that better value doesn't seem to translate further once an IBO realizes that there is no residual income at the end of the rainbow. Many IBOs don't seem to mind paying for Amway stuff when they believe that they will one day walk the beaches of the world while more money than they can count will keep rolling in. When the dream fades, so does the desire to purchase these awesome products. If not, with tens of millions of former IBOs, Amway sales should be through the roof after all these years. But it hasn't. Although Amway recently reported an increase in North American sales, that wasn't the case in the last 10 years. Amway apologists even have excuses about why that is the case.

Amway also reported some years back, that they have updated their average IBO income ($202 a month instead of $115 and excludes diamond bonuses, etc.  Also, this is important, the average income EXCLUDES IBOs who "do nothing"). While it is still miserable, it has gone up, although a clear explanation as to how and why they calculated the "average income" was not apparently given. So the debate continues. Critics analyzing and predicting how and why, and Amway apologists making excuses and justifying their position. Why not just be transparent and end the debate once and for all? I think most people know the answer. The bottom line for most is whether or not they make a net profit. For the vast majority of IBOs, especially the ones on the system, the answer is a net loss. It is predictable and easy to conclude. The 6-4-2 or any other version of the compensation plan clearly shows that very few people can make any decent money. If a platinum IBO typically has 100 or more IBOs, that is your answer there. It should be noted that a platinum might not even be very profitable if they are sold out on buying system tools.

So IBOs and Amway defenders, are you making money (net profit)? Or are you just making excuses?

Bad Advice?

 Based on my personal experience and based on having read numerous accounts from other former IBOs, it's pretty clear that the higher uplines, absolve themselves of issues and problems by having others do their dirty work. While some leaders are bold enough to make dumb statements on stage, many uplines will have their "eagles" or platinums do their dirty work, which is to pass bad and often self serving advice to their downline. Advice that will help them (upline) to profit directly from the losses suffered by downline.

For example, a diamond may stand on stage and talk about the merits of getting out of debt. Now getting out of debt is a good thing and nobody should get caught up in credit card debt and other piles of debt. But so many times, I sat in meetings where the group was told they needed to be at the next function - no matter what. Do whatever it takes to get there, even if it meant selling personal belongings. Ironically, the solution to getting to the next major function did not involve selling Amway products. So many IBOs made sacrifices of time and money to get to the next function, but their business did not experience any growth in volume or downline. I saw many crossline IBOs attend meeting after meeting and function after function without any downline. They faithfully spent their time and money chasing a dream based on lies by the upline leaders. Our group was told that upline made zero profit on tools. While some groups now admit that profit is made on tools, there is still a lack of transparency about the tools profits and as far as I know, there are no formal written agreements with regards to the tool profits.

I also recall our platinums having platinum and above meetings while we were at major functions, and it seemed that the platinums always had something to teach the group that was contrary to what we had just heard on stage and the platinum would tell us that he had the freshest information from the meeting. It's like the platinum was just a henchman for the diamonds and carried out their dirty deeds. Another example is how the diamonds taught vertical alignment where God is first, then your spouse, your kids, your job and in 5th place was your Amway business. But anytime an event such as a friend's wedding or an anniversary dinner or your kid's soccer game conflicted with an Amway event, the group was told "attend all meetings". All means all, is what our group was told. That is directly contrary to the concept of vertical alignment. In fact, the Amway IBOs became less useful to their communities and churches as they are constantly attending meetings and functions and unable to serve in other capacities. I also wondered whether the Amway business and tools consumption took away their ability to tithe and give to the local charities. Our upline would tell us to go diamond and then send in $10,000checks as if that made it okay not to serve others and help the needy.

It is my informed opinion that this still goes on today, despite the claims of Amway apologists that my experience is twelve years old. There is ample evidence suggesting that very little has changed from 20 years ago. In fact, many of the leaders from my IBO days are still teaching unethical things to this day. Many Upline passes bad advice downline, but they do it in sneaky ways such as having their downline leaders pass the information on. This is also how Amway itself can skirt some of their issues, as IBOs are not Amway employees, they are "independent". But most people in North America now know the truth and hopefully this article shines some light on that truth.

Freedom?

 Financial Freedom! That was one of the major battle cries I heard constantly when I was recruited for the Amway business. You gain control of time and money by creating residual or passive income. That is true financial freedom. You wake up at noon, no job, and just do whatever you please, whenever you please. I remember the speaker saying that broke/unemployed people also had freedom, but it was different because they were broke and could not afford to go golfing or do other activities that required money on a regular basis. 

I am assuming that this is still the case for many IBOs. Of course, upline leaders may toss in a disclaimer that you don't get rich quick as an IBO, but the pitch apparently still contains the financial freedom and residual income theme, based on my experiences with IBOs. IBOs still think they will be rich. Also, 2-5 years sounds like "get rich quick" to me. 

But hey, financial freedom would be a great thing, don't get me wrong. Who wouldn't want to be 35 years old with enough cash to never have to work again? I mean I could spend some time imagining how fun that would be. It would also be fun to imagine what you would do with all the cash if you hit the powerball lottery as well. But for the starry eyed IBOs, I simply have a few questions for you to ponder. A few realistic questions that you should be asking yourself. The answers to these questions will tell you a lot.

1. Who in your group or upline truly has achieved financial freedom? Have you seen their financials or simply a display of wealth such as pictures of mansions and fancy cars? Mansions and fancy cars could just be a massive pile of debt. Not too long ago, there apparently were diamonds who had their homes foreclosed, and a triple diamond who was in chapter 7 bankruptcy proceedings. Find out if anyone in your group/upline has actually achieved the success that they are using to recruit you. Also, if they are financially free, why do they work at function after function? Traveling and speaking might not be a traditional job, but it is still work, nonetheless.  If you need to be somewhere at a particular time, and doing it for money, you are not free.

2. Even if you find someone who is retired and golfing everyday because of Amway residual income, ask yourself what the likelihood is that you will be able to achieve the same results. If diamonds are still working, what chance do you have of success if you are new or experienced in Amway, and have few or no downline. More than likely, your chance of winning the lottery will be greater than your chance of achieving a significant residual income from your Amway business. Also, I don't know of any Amway retirees who built their business once and walked away with any significant residual income from Amway. Do you?

Hypocrites?

 Now that the internet is so accessible, information flows freely and some of the dark secrets of the Lines of Sponsorship have been exposed. Also, as times passes, it is becoming clear that a bunch of upline leaders are major hypocrites, apparently motivated by greed and personal gain. I believe this trend will continue as well. It appears that these same leaders have managed to get around Amway's accreditation guidelines, which appears to be toothless.

Many upline leaders appeal to their audience by talking about how the Amway business can save marriages. I remember sitting in an audience when some diamonds spoke about how couples who build the business have a less than 2% divorce rate as compared to the national figure of 50% or so. One major reason cited was the financial stress that J-O-B people had (not enough cash). But now we see some upline diamond leaders getting divorced and, in some cases, no explanation is offered, as if the missing spouse was beamed up by aliens. Many leaders simply revise history or deny that certain events happened. Some leaders just pretend nothing happened and it seems like IBOs are very forgiving, thus no real accountability has ever been applied to upline leaders.

People also found that some diamonds make a lot of money from tools. When I was an IBO, we were told very clearly, that nobody made profits from tools. That profits went back into the functions to make them better and cheaper. (Has any function gotten cheaper in the last 12 years?) In fact, when I was an IBO, I was told that WWDB was a non-profit entity, which was a bold lie. I will admit that upline later changed their story to WWDB was a for profit company, but nobody kept profits, thus the channeling money to make events better and cheaper. Again, when have events ever been cheaper. Now I don't think that events should be run pro bono, but the leaders should be transparent about it rather than the lies and shroud of secrecy that often accompanies talk about tools and tool income.

Some upline leaders also spoke of how utterly stupid it was to take out a loan as the banks make so much money off the interest. We now see some of these very leaders having their homes foreclosed! Some of these diamonds were the very ones who said their pay cash for everything, including their homes and cars. It is not in the hopes for these folks to suffer, but it is exposing the lies and deception that leaders used to entice IBOs to join and to purchase tools that were supposed to help IBOs to attain the same lifestyle as the diamonds. However, rather that more diamonds, I believe WWDB and some other LOSs, at least in the US, have fewer diamonds now than 15 years ago. Where's the evidence of success?

What's even more amazing is how the hypocrisy of some of these leaders are exposed to downline and the downline simply ignores it and continues to follow blindly without an explanation or questioning the leaders after the incidents are exposed.

IBOs should ask their leaders questions when these kinds of issues arise. And you should think twice if the answer you receive is silence or deflections.

5 Years?

 One of the things I heard as an Amway IBO, and I believe is still said in some Amway meetings is that conventional businesses do not profit for up to five years. That's bogus. Conventional businesses make a profit as soon as they sell their first product. They may not have a net profit right away because of the initial investment into equipment and rental property, but they do profit by selling goods. The same principle would apply to an Amway business except that Amway IBOs have difficulty selling products. If you opened an Amway catalog and compared their prices to local retailers, you would know what I'm talking about.

Despite the small startup costs and the little to no overhead costs, most IBOs never turn a profit. I will acknowledge that many IBOs probably never do a single thing once they sign up. I believe there is an underlying story behind this as well, but I will move on. Out of the more serious IBOs, even in this group, most of them will never make a net profit if they are using tools. Factoring the cost of the website, the voicemail, standing orders, books and functions and cds, IBOs simply get drained of their money a couple hundred of bucks a month at a time. Amway uplines meanwhile, are earning nice profits on product purchases and someone upline are also earning profits on the tools. The tools carry a higher profit margin so it would make sense that some uplines earn more from tools than from Amway.

Toss in other challenges such as high prices for many products (higher than local retailers) and a crappy reputation from IBO behavior such as tricking people into meetings and you have an opportunity with nearly insurmountable handicaps. Yes, a rare few and usually charismatic people can overcome these odds, but only one or two out of tens of thousands are able to do so. And even those who reach the pinnacle of diamond, may not be able to maintain qualification. It's very common for someone to reach the level of emerald or diamond only to backslide and not qualify the following year. So much for residual income and walking the beaches of the world.

So I don't know all of the detailed statistics about how long it takes for a conventional business to turn a net profit. It may take up to five years. But based on my experiences and some number crunching, I'd have to say that the vast majority of Amway Business Owners NEVER TURN A PROFIT - EVER, and most of them ending up with net losses when business expenses are factored in. And toss in the fact that Amway allegedly has little or no overhead costs and I can only conclude that the Amway opportunity sucks.

Deception?

 I was thinking about how prospects are invited to see the plan. In many cases, there will have been a bit of deception or half-truths (lies) told in order for an IBO to get a prospect in front of the plan. But then I thought about the plan and how much deception was used in the plan itself by the speaker.

In many cases, IBOs and new prospects are deceived right from the beginning. The speaker might make some small talk, and get the prospect to agree on certain issues, such as income tax and insurance eating away at your paycheck, etc. When a prospect hears this, it will make sense, and they will agree and trust the speaker somewhat. After all, the speaker has been built up to be a financial whiz and all. And much of what the speaker says makes sense, at least on the surface.

Then the deception begins.............

The speaker might talk about IBOs saving 30% on products right from the start, which is false. Here's some information debunking that age old myth:
http://www.amquix.info/Save30_myth.html Not only do many products cost more, factor in shipping and handling fees and it's not even close in many cases.

Then the speaker might talk about 98% of people being dead or broke by age 65, which is not true. The speaker might talk about 90% or more of small businesses failing in the first year (which is also untrue). These little factoids (which are untrue) are apparently used to make other opportunities seem flawed in comparison with the Amway opportunity. Readers and prospects really need to do some research and due diligence, and they will easily see through the mistruths.

The speaker might then talk about how the Amway opportunity is cheap to get started and has little or no overhead. But the problem is that many dedicated IBOs will get hosed as their upline will begin to teach them that they need to invest in their business in the form of voicemail, book of the month, standing order and attending all meetings. These expenses nearly guarantee that an IBO will end up with a net loss of income. What's more, upline may teach that this is success! In many cases, the speakers don't care about the prospects. All they care about is getting people signed up and on the system. Sure they may loan cds to newbies, but once an IBO wants more, they are likely told that "serious" business owners buy their own tools.   And IBOs don't seem to notice that tools and functions have become their business "overhead".

So a question for IBOs and prospects. Is it a good opportunity when you have been lied to or deceived right from the outset?

Pigs Don't Know Pigs Stink?

 I recently came across some comments on a forum indicating that they had heard comments about "Pigs don't know pigs stink". I'm certain it stems from a tape recorded by a diamond named Dave Severn (wife was Jan). This slogan was quite popular when I was an IBO in the 1990's and I'm sure that some Amway IBOs still toss around the phrase. It was basically used to describe people who weren't in Amway. They worked hard at their jobs, but they were "broke" and weren't getting anywhere. At least the IBOs (who were also broke) were doing something about their financial situation (Amway!). So, the ignorant rest of the population didn't know any better, thus the term pigs don't know pigs stink.

Having been out of the Amway business and having done a great deal of research about Amway and the Amway groups such as WWDB and BWW, I can say the exact same thing about IBOs. IBOs don't know IBOs stink. Of course, I don't mean that literally, but business building IBOs order their products each month. The pay for their standing orders and attend all the functions. They desperately try to recruit new prospects, and they use all the catchy phrases taught by their upline, either in person or off of a tape/cd.(thus the term "tape speak") They are very likely losing money each and every month, all the while thinking they are becoming successful and better or nicer people. At the end of the year, they sometimes suffer massive financial losses in the thousands because purchasing all of the tools and training materials add up to a tidy sum of cash after a while.

At the functions, the Amway IBOs smile and act positive, even when they are losing their shirts. Upline will edify their dedication to the system and teach them two very important, but self-serving pieces of advice. They will teach IBOs to never quit, and that if IBOs quit or fail, it is always their own fault, even if they did everything upline taught them. In this manner, upline removes any responsibility for the IBO's failure. Ironically, upline is quick to accept responsibility for any success (even if there is little to none). All the while, IBOs are attending all the meetings, doing all the steps they have been taught. They act alike and in many cases, look alike. Most of them also share a common result. They are losing money, and many are losing lots of it. They are simply taught to ignore the losses and to remain positive. Most people eventually figure it out and walk away from Amway. Most will never mention their involvement again and because many are sponsored by friends and family, will never file any formal complaint or discuss their displeasure.

The Amway IBOs continue to associate with their positive and active fellow IBOs, all the while their bank accounts are shrinking and transferring funds to upline. Pigs don't know pigs stink indeed.

CORE, The Recipe For Failure?

 Amway leaders often refer to CORE as their steps to ensure that an IBO will succeed. But in my informed opinion, CORE will guarantee failure. Here's a breakdown of CORE and why it doesn’t work. Here are the CORE steps. Some groups may have variations of CORE, but this is generally what many groups use:

1 - Show the Plan (10-15 per month)
2 - Retail the Products (10 customers @10 PV each)
3 – Tapes/cds/audios
4 - Books (15 to 30 minutes per day)
5 - Functions (attend all)
6 - Accountability
7 - Counsel with Upline (Be teachable!)
8 - Buy 100% of your own products
9 – Communikate (Voicemail)

Many upline will tell you that your success is nearly 100% guaranteed if you follow these steps for 2-5 years. Some Amway enthusiasts will tell you that 6 months of this activity will nearly assure you of a platinum level business. Certain steps are within the IBO’s control, such as reading every day and listening to cds, and attending functions. It is also easy enough to be accountable, counsel with upline, buy your own products, and use KATE (voicemail).

Here’s where an IBO’s efforts will break down. Showing the plan and retailing products. And remember, if you cannot do these steps then you are not considered “CORE” and your upline will likely tell you that it is your own fault and that you simply haven’t been CORE, therefore you did not achieve success. There is some truth in this but let me expose the system in a different angle.

Amway has a spotty reputation in the US. I don’t think anyone can dispute this fact. Therefore, for the vast majority of people, being able to show the plan 10-15 times per month is a nearly impossible task. If you are able to do this, you are a really good salesman or a good liar. In this scenario, the IBO is already successful, but not because of CORE, but simply because the IBO has the gift of being able to convince people into seeing the plan. But for many IBOs, they may contact hundreds of people and not be able to get anyone to see the plan. Even IBOs who follow upline advice on how to contact will probably not be able to show 10-15 plans per month. Thus, this IBO, who is doing the work, will not be able to succeed. The system will blame the IBO, but the reality is that the IBO has too big of a disadvantage to overcome.

Secondly, with high prices (on average) and with a spotty reputation, most IBOs are unable to retail products. Thus, most IBOs are unable to sell products, therefore they are not CORE, therefore upline will blame the IBO for failure.

What if an IBO contacts 1000 people and cannot get 10 people to see the plan? Upline will claim that IBO is not CORE and therefore it is personal failure of the IBO. IMO, the only reason why upline can claim that CORE works is because in order to do the CORE steps consistently, you have to already be at a certain level of success. The vast majority of IBOs cannot and will never be able to reach that level.

That is the myth and the deception that many uplines will use to attract recruits. That each IBO can do the CORE steps. When only a fraction of 1% ever reach the level of platinum or higher, the numbers strongly support what is written here. Apologists are welcome to try and prove me wrong, but they can't.

Is Amway An Addiction?

  The Amway diamonds have been laughing all the way to the bank for decades now.  Sone diamonds use this to justify their actions as legitimate because surely a scam would have been uncovered and shut down.  To that I say organized crime is older than Amway and alive and well.  So is the Nigerian scam and other similar variations.  The LOS such as WWDB or Network 21 continue to roll on using Amway as their vehicle.  All the while their downline is getting raked over the coals in the form of never-ending financial losses.

The scheme is quite subtle and clever.  They often target younger folks who see their careers just starting thus they have a long journey towards retirement. The diamonds say you will work hard but Amway is a great shortcut to early retirement and possibly untold wealth.  At meetings and functions, they show things to entice recruits into joining and for IBOs to drool over as a reason to press forward.  They'll show slide shows of fancy cars, homes and vacations, although no actual evidence that they own all of these visually attractive trappings.

The diamonds say they basically hold the secrets to unlocking this secret to succeeding in Amway.  But to unlock that secret you will need to dedicate yourself to the tools and functions with undying loyalty.  They say if you never quit you will eventually cross that finish line sort of like running a marathon.  Sounds like something that most people can do if they just set their minds to it.  In a way, as a recent comment said, Amway almost becomes an addition of sorts.  The IBOs are losing their shirts but they continue to press on, as if they have to.  Part of it is the fear that they could be missing the boat to riches if they quit.

What goes unnoticed is that the ultimate goal is like finding the end of a rainbow.  It will always be seemingly out of reach.  But upline says do not despair, just continue to immerse yourself in the tools and functions and you will make it.  As if consumption of tools and functions alone will make you a success.  Amway for sone, becomes an addiction, like a drug user or someone hooked on smoking.  It’s hard to quit plus you start to think you invested too much to just quit. 

And that’s how the diamonds continue to perpetuate a scam.  They instill a fear in you that quitting makes you a broke loser and that quitting means you have no hope for a good financial future.  That quitting can’t be an option.  But in business, sometimes quitting is the best decision.  Cut your losses.  It doesn’t mean you’ve quit trying to better yourself and your family.  But it might mean you just need a better way to achieve your goals and dreams. There are many better options besides Amway.  You just need to go get it.  

Denial Is Not A River In Egypt?

 One thing that appears to be common amongst IBOs is how IBOs are in denial. They truly believe that their uplines are working in their best interest and that upline wants their success. I don't believe that to be true. If uplines were truly making a fortune from Amway, why would an downline IBO have to pay for practically every bit of help they get from upline leaders? Why are there endless numbers of cds and meetings at cost, to learn to buy and sell, and to recruit others. Is Amway that complicated that IBOs mist be continually trained or is it because uplines make the most profits from tools?

To show the plan, you would need to pay to attend an open meeting, and pay for your guests, even if they do not register as a result of the presentation. You pay for voicemail to communikate with your upline and downlines. You pay for standing orders, and you may end up paying twice if you were in attendance at the function when the standing order was recorded. You pay for books and other materials as well. And there is no end. If you are in Amway for ten years, you would get ten years' worth of this material. If you are in for thirty years, you would get thirty years of this material.

What's more, many IBOs turn their heads when ugly facts rear their heads. For example, some IBOs deny that a prominent triple diamond was involved in bankruptcy proceedings. They continue to edify and pay for financial advice from someone who could not even manage his own finances. They believe that Amway saves marriages even when the leaders who speak this may be getting divorced. It's like upline simply revises history and downlines buy it without question. Many IBOs do not even see it as a problem that some upline boldy lied and said there were no profits from tools in the past. I find this odd because tool profits are still shrouded in secrecy and downline simply believe that they will eventually get a cut, even without a written compensation plan and agreement.

I believe too many IBOs are simply in denial. They give upline their trust and upline abuses it. IBOs are told they are successful for attending a function even when they might be losing money month after month. They may be told that the Amway business is not about money but about making friends. They may be told that they are nicer people because of their participation in Amway. What too many IBOs do not see is that they are in denial about their business. Most IBOs are losing money, a little at a time, perhaps $100 or $150 a month. For the hardcore, maybe more. But they are taught to ignore these simple facts and deny that there is a problem. They cling to hopes that success is right around the corner or that they will succeed if only they will never quit. Most of this advice only serves the upline and not the IBOs. It is a sad thing.

It is my hope that exposure of some of these tactics will be beneficial to information seekers and perhaps new IBOs who have not yet been fully indoctrinated. I encourage people to ask tough questions, demand answers and use due diligence when checking out this opportunity. The fact is that very few people every make a profit and people should know this before getting involved. Don't deny the obvious. If the details don't add up, keep researching. The internet is chock full of information about Amway. This website is just one source but look high and low before committing your time and money. The fact is that less than 1% of IBOs make any money out of this opportunity. Don't deny the undeniable. Get the facts and act on them!

Freedom WIth Part Time Effort?

 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 that 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.

Build Your Dreams?

 As an IBO, I was a member of Worldwide Dream Builders, or WWDB. We often told prospects, when recruiting, that we were with WWDB and did not mention Amway unless the prospect asked. If the prospect didn't ask, then we didn't tell. Apparently, part of the appeal of WWDB was to appear successful, even if you were not. It is probably why in some functions, we were taught to "fake it till you make it". Basically, the premise was to appear successful until you actually became successful. Sadly, there were very few who were "successful".

WWDB also scheduled a major function called "Dream Night". This was a one evening function with a sit down dinner at a cost or about $65 to $75 per person. A major portion of the function was a slide show of he diamond lifestyle. We saw mansions, yachts, jet skis, sports cars and fabulous trips, jewelry and all kinds of extravagant luxuries not intended for the mortal man. But, all of this was yours if only you would follow the foolproof WWDB system. I thought it was real when I was an IBO, but I now wonder if these luxuries were really owned by the diamonds. I suspect they may not have been. The money these diamonds supposedly earned was unlimited, or so we thought. I know know that a diamond lifestyle isn't as rosy as they want you to think.

Diamonds apparently must keep working. Even if some of them might collect Amway income for a while without much effort, I believe their lucrative tools and functions income would stop the moment they stopped working the business. I know there are reports from Amway that sales are up and retention of IBOs is up, including the North American market. (I kinda wonder who true those reports are)

Anyway, getting back to the subject, I ask this question. How many dreams have been built as a result of someone's involvement with Worldwide Dream builders? David Shores apparently had his home foreclosed. Greg Duncan apparently suffered the same fate plus some involvement with bankruptcy. Brad Wolgamott is not with his wife or WWDB anymore, along with Dean Kosage (now Dean Grey). I don't see reports of many new WWDB diamonds and in fact, I believe there are fewer diamonds in WWDB now than when I was an IBO in the 1990's. Where are the diamonds? Where are the dreams? Whose dreams have been built? Conversely, I have seen people's finances wrecked with WWDB being a major contributor to that problem. Bankruptcies and homes lost chasing an Amway dream at upline's advice.

If you are being prospected or seeking information on WWDB or other LOS groups, ask them where the success is. Do not accept pictures of checks or pictures of sports cars as proof. Ask for bonafide financial records like real business owners do. If you need more information, my contact information is on my profile. Good luck!

My Best Interest?

 The really insidious part about some of the LOS leaders, such as the ones I had in WWDB, is that they apparently are cutthroat businessmen with nice suits and nice smiles. They are 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 crossline 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. I know of an IBO who did just that. He quit his job to attend a major function and got into all kinds of financial problems when they got back to real life. 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". This is scary advice and why I maintain this blog.

Our group was also strongly encouraged to buy 5-7 extra cds every week (or more). 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 crossline 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.

Success?

 Success is subjective. Someone making ten dollars might be considered successful. For others, nothing less than a barrel of cash will suffice. One other important point is that there are undoubtably some very successful people in Amway. I am sure that some Amway diamonds are quite well off and enjoy some of the finer things in life. But the reality is that these successes are very rare and many of these successes apparently are not sustainable as many people are led to believe. The more likely scenario is is an IBO making a few dollars a month while spending more than that on training. They are losing money but they think they are successful. The reality indicates otherwise. 

But the bigger issue in the Amway opportunity is where the success comes from. Sure, many people want to "go diamond" and live in luxury while barrels of cash roll in. But what is unknown to many, is that the few who enjoy the lifestyle and trappings do so at the expense of their downline. The downline move the volume and the downline purchases the system materials, both of which is profitable for the upline. Because Amway products, admittedly are not commonly sold to people who are not IBOs, then anyone can conclude that upline success comes from the pockets of the downline. Most downline would be better off writing a check for $100 each month to their upline and not participating in the business or buying products at all. 

This in itself would not be such an issue if the system actually churned out new successes frequently AND if the downline were not led to believe that the system is the key to their success. But less than one half of one percent of IBOs ever reach platinum and out of those who do, only a tiny fraction of one percent ever attain the diamond level. But the business has tens of millions of people who tried and could never achieve what was promoted. Lack of effort may be a factor, but when that many people try and fail, it's evident that the system is flawed as well. The rate of success is comparable to a lottery, which is sad when you consider that Amway is not a game of chance. 

To summarize, it is possible for someone to achieve a level of success in Amway, but it is so difficult and so rare that IBOs probably have a better chance of winning the lottery or being struck by lightning than they do of achieving a significant level in the Amway business. Some people are successful, but it is usually at the expense of their downline. The catch is that uplines will teach their faithful downline IBOs that attending a function or buying a standing order is success, regardless of whether an IBO is earning a profit. So many IBOs think they're successful but they are simply fooling themselves with the help of their upline. 

Success is undeniable, but sadly for the vast majority of IBOs, it is also unattainable, at least in the Amway opportunity.

The Illusion?

 One of the things my Amway upline taught us ad nauseum was that we needed to have faith in our business and in our upline. That we needed to believe that we were going to be successful. IBOs are told that they should act successful even if they are still working their way up the ranks in the business. It is why they ask (require) IBOs to wear suits and business attire to all meetings and functions. This is one of the weird quirks about the business in my opinion. I live in Hawaii, and I remember a function they held in the middle of July in a high school auditorium and there was no air conditioning. I think my suit needed special cleaning because it was completely saturated with perspiration. 

Anyway, with this part of the year, soon (in a few months) there will be thousands of IBOs shuffling off to a function called dream night, or in some cases, winter conference. The tickets are about $75 to $80 and includes a dinner. What IBOs are often unaware of is that many venues will allow you to run these conferences for $20 to $25 per person. The rest of that ticket prices goes directly into your upline's pockets. Anyway, the dream night function will feature slide shows of mansions, yachts, jet skis, sports cars, fabulous vacations and other trappings of wealth. 

What many IBOs don't realize is that this display of wealth is just that. There is no bonafide evidence to indicate that these diamonds actually own all of those toys and goodies. The diamonds probably won't verbally confirm it either, because these toys and goodies may not really be owned by them. It could be rented, or maybe some upline corwn ambassador may own the mansion, but IBOs will assume that these trappings of wealth are common once you reach diamond. As an IBO, I never actually knew how much a diamond really earned. I just assumed it was a lot because we were shown all of these goodies and just assumed all diamonds had these kinds of lifestyles. 

If I posted a picture of a mansion and a jet and said I owe it all to my earnings as a blogger, people would cry foul, that I am lying or making things up. And they would be right. Well, I would guess that many diamonds are doing the very same thing if they appear on stage and implying that they have jets and mansions. As I said, someone may own a mansion and a jet, but to imply that this is a part of the typical diamond lifestyle is a stretch. The evidence is there. Some diamonds have lost their homes to foreclosure. My old LOS diamonds (WWDB) taught us that diamonds pay cash for everything, including homes. Now confirmed as a blatant lie. Who knows what else they may have misrepresented? 

I ask IBOs and prospects who may be attending dream night, to watch with a critical eye. What is being implied with the display of wealth? Analyze if those goodies can be purchased with a diamond income (maybe $150,000 plus some tool income). Ask yourself if this lifestyle is truly sustainable? Ask yourself if you can live with yourself if deception is a part of earning your diamond lifestyle?

How You Can Get Sucked In?

 http://hunza1.tripod.com/amway/directly.html

While each of these Systems claims to be different from and superior to the others, they seem to me mostly indistinguishable from each other, sharing a number of common characteristics:

1. Recruits are lured in by exaggerated income claims and ostentatious displays of wealth.

2. Once they are in, it is repeatedly stressed that they will not have any chance of attaining said wealth unless they strictly adhere to the System, meaning they should buy at least one tape per week, attend all meetings and rallies, and spend most or all of their free time trying to recruit others. Amway's rules state that the purchase of motivational motivational tools is optional, but it seems clear that those who sell the tools have figured out how to pay lip service to these rules while continuing to exert pressure on their downlines to buy the tools. "The tools are optional, and so is success," goes the oft heard refrain.

3. Retailing is downplayed or ignored completely in favor of self-consumption of Amway products. It's not surprising that these Systems have been the subject of a series of lawsuits, as they are inherently deceptive and fraudulent. Distributors are routinely not informed that their upline may be making as much or more from the sale of motivational tools as they are from the sale of Amway products. Without this vital piece of information, distributors naturally assume that the incomes and lifestyles of their upline are attributable to their Amway businesses, and they buy the motivational tools in the hopes of achieving a similar success. It's an insidious and self-perpetuating cycle: the more motivational tools the masses of downline distributors buy, the more successful the upline distributors appear to be in their Amway businesses, which in turn inspires the downline distributors to buy more motivational tools, and round and round she goes. Lower level distributors are either bled dry and quit, or hang in long enough to make it to the level where they start to get a cut of the tools profits.

Amway IBOs Or Fraud Victims?

 I've heard over the years, many Amway IBOs who failed in the Amway opportunity who blamed themselves for not putting in enough effort, not trying hard enough or not working the system. While I don't doubt that some IBOs don't work hard enough, I cannot fathom that so many motivated and eager prospects simply failed because they didn't work hard enough. I believe IBOs are taught to accept failure as their own despite having followed advice given to them by upline.

Uplines will tell new IBOs to trust them and that these new IBOs will succeed if only they will follow the advice of the allegedly successful diamond because they have already blazed the trail for you. Ironically, after many IBOs fail, upline will never take responsibility for the advice they issued that led to downline failures. They then turn the tables on their donwline and say that their advice is like a buffet. You pick and choose the advice you need and disregard the rest. That is such a bunch of crap that I cannot fathom downline IBOs buying what they are shoveling. A new IBO places their trust in the diamonds because they have achieved the pinnacle of success, but a new IBO is supposed to pick and choose which advice to follow? And then failure is the fault of the downline?

Ironically and sadly, these downline, when they ultimately fail, often end up blaming themselves and just disappear unless someone recruits them again. They are often sponsored by friends and family, so you won't see them filing complaints against Amway or the uplines who led them astray. Uplines nearly assured their success if only these new IBOs would buy the training materials and attend all of the functions. But many IBOs work hard and do everything outlined by upline only to fail. It is likely because the system doesn't work. Many financial systems are for sale out there and most of them have very little success. Amway is no different, except that uplines promote their systems as sure fire.

It is however, my belief that many or possibly most IBOs are the victims of fraud in that they are given possibly false positive information about the Amway opportunity. They get involved and find out that the system doesn't work, and then they end up quitting with a loss and them blaming themselves. Brilliant for the uplines who profit but, in my opinion, it makes IBOs the victims of fraud by upline. Upline profits whether or not their downline makes a cent. Some upline strongly encourage downline to buy more and more tools, even when they know that those downline have no chance of making money in the Amway opportunity. It makes the IBOs victims, and it makes the uplines a bunch of crooks.

What Has Changed?

 If I'm not mistaken, Amway was booming in the mid 90's. Their sales had hit a new high of around 7 billion at that time. Recruitment was up and there seemed to be new diamonds and emeralds popping up all over the US. I joined the Amway business around 1997-1998 and the wave was still going. I later quit, discovered the lies and fraud that was used to entice me to join and eventually became an advocate for the truth about the AMOs (AMO = Amway Motivational Organization such as WWDB, BWW, etc) and some of the AMO leaders.

One of the things used by Amway defenders is that the experience of people who are critical of Amway are invalid because the experience may be dated, or because some people who are critical of Amway have never actually been IBOs. I don't buy that argument because you can be quite knowledgeable about certain things without having done them. I know that I would not put my hand on a hot stove because my hand would get burned. Even if I have never burned my hand on a stove before, I know this. Or if I burned my hand on a stove 15 years ago, would my experience be different if I put my hand on a hot stove now? Unlikely. I also know that jumping off a 10 story building would not be good for my health, although I haven't done it myself.

Yes, the Amway business has undergone some changes over the years. Most groups do not use the call in and pickup method of product movement anymore, although my understanding is that some groups still do this for standing orders and other tools. There is accreditation process for the tools which may have helped, but even with this, there is evidence of unethical practices going on, just that these issues are going on on small meetings rather than recorded functions. Many groups still focus on recruiting new IBOs and not on selling products for a profit. Many groups still focus on selling their downline tools and not ensuring profitability for new IBOs.

My former group, WWDB, apparently still has many of the leaders who were present when I was an IBO. There have been very few new diamonds in the last 15 years or so, relative to the number of IBOs that have come and gone. The lies and deception by the upline leaders were never accounted for. They have been exposed as basically frauds. Leaders who taught "pay by cash only" are found to have debts they cannot pay. leaders who swore that Amway saved marriages are getting divorced. Those who swore that tools were the key to success have little or no success to show for all the tools they sold. There is little "fruit on the tree", which was a common phrase back in my IBO day. The tree is close to barren.

What has changed in the Amway business in the last 20 to 30 years other than a name change to Quixtar and then back to Amway? Not much when you look at the big picture. The masses are still losing money today.

A Tough Business?

 There are some folks who try to sell the Amway opportunity as one that works in a good or bad economy. The pitch might be that people need household products such as soap or cleaners in a good or bad economy. While that may be true, in a tough economy, people will be looking for the bottom line, or the cheapest price. That is why Walmart is wildly successful. Walmart's slogan is "live better, save money". Being that Walmart sales exceed 500 billion dollars, it means that one day's sales exceed Amway's sales for more than a month. Clearly, price is important to consumers.

Amway apologists like to cite that not everyone buys a Porsche or a Lexus. While that is true, it is ridiculous to think Amway products are a Porsche or Lexus compared to other household products, and that consumers in general, even care less about issues like that. What do Amway IBOs do? Brag that their laundry soap is better than their neighbors?  LOL.  

Another silly tactic that some Amway IBOs employ is to drop names such as Robert Kiyosaki, or Warren Buffet promote MLM.  The fact of the matter is Robert Kiyosaki makes him money from Network Marketers, not from Network Marketing. Or, he's selling the IBOs books and seminars. Warren Buffet and others apparently own MLM companies, thus they also profit FROM network marketers and not from distributing the good themselves. It's a silly argument and anyone with some discernment can see right through it. I even see rumors spread by some IBOs that various movie stars or celebrities are involved in Amway. The truth is that there are some celebrities that are involved with Amway, but typically, they are paid to endorse Amway rather than being rank and file IBOs.

That brings us to whether Amway is a viable business opportunity. Let me put a disclaimer that people who may try to sell goods without participating in the training system might have a chance to make a few dollars, but these folks are quite rare. Many people get drawn into going diamond and chasing a dream. It is why you see big functions and conventions of people chasing dreams that likely won't come to pass. The typical IBO doesn't do much, if anything at all. Out of those who actually put in effort, a fraction of 1% might go platinum and an even smaller fraction of 1% might make some money. Amway's own numbers and the plan shown by many IBOs confirm this. Amway says the average "active" IBO makes just over $200 a month. We also know that it takes about 100 IBOs or more to form a platinum group. We know that many IBOs do little or nothing. That already provides a clear picture that only a small percentage of IBOs can ever reach that platinum level where you might net a small profit, depending on your business expenses.

Factoring in the Amway (crappy) reputation and you have a very tough business opportunity. Now Amway itself may have done good things (politically) but IBOs themselves have ruined the Amway name. They have lied or tricked people into attending recruitment meetings, or they have called people broke or losers.  Amway is a very tough business to succeed in, regardless of your level of effort.

Didn't Work Hard Enough?

 I believe there's a gigantic myth spread by upline 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 signup 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 occurred.  

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 comprehensive 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 enough work.