The Truth?

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

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

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

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

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

Don't Quit Your Jobs?

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

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

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

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

Amway And Holidays?

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

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

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

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

Don’t believe me?  Do the math.  

Happy Thanksgiving!

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

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

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

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

Just enjoy the Thanksgiving Holiday and the upcoming Holiday season.   

  

An Observation?

 

An Observation About Amway?



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

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

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

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

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

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

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

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

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

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

Dreams Don't Pay The Bills?

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

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

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

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

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

Reality?

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

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

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

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

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

Get Out Of Debt?

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

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

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

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

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

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

Sucked Into Amway?

 If you have ever sat through an Amway presentation and the follow up teachings as I did, you can get a clear picture of how the uplines slowly suck people into the system. The speaker will be introduced as a picture of success. Possibly introduced as being in the top 1/10 of 1% in income (But with no evidence or proof). They will talk about how taxes, insurance, and inflation eat away at your paycheck. More than likely, they will say they suffered the same way until they figured out how to defeat these issues by making more money. Of course, they will eventually drop the "A" bomb on you and say it's Amway. Very likely they will say that you should not care what it is if it gets results.  The problem in reality, is that Amway doesn't get results for the vast majority who make an attempt at it.

You are then shown the plan, and many people think that 2-5 years and "finding six" (Finding 6 = sponsoring 6 downline platinums, which would make you a diamond) is something very manageable for the results they promote (walking the beaches while residual income flows in). At the very least they say, you will make some money and save some money. Who can argue with that kind of logic? They will also likely mention that Amway is low risk or no risk with little or no startup costs. Again, how can you argue with that logic?  The problem is that it's not true.

You finally convince yourself that you can do this. You sign up and you are likely told that it is important to get some tools because after all, a carpenter can't build homes without a hammer and saw and that any business owner would have to make some investment into their own business. So now because of the tools, you are operating at a loss. You may then be told that business owners normally operate at a loss for years and that it might also be wise to channel your bonuses back into your business by purchasing more tools.

Before you know it, months or years may pass before you start to realize that you are on a treadmill. You keep walking but end up going nowhere. Then your upline may tell you that the business is not about money but more about making lifelong friendships.

In my opinion, this whole system is a cleverly designed systematic way for uplines to slowly drain your resources and making you think that you are successful despite showing no profits. Your upline may edify small things like showing the plan or making a sacrifice to attend a function. Sadly, you will rarely see someone edified for actually making a net profit.

It's a slow process, but most people slowly get sucked into the system, just like quicksand. I hope IBOs and information seekers are able to recognize the scheme if and when it happens to them.

Diamonds Pay In Cash?

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

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

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

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

You Upline Is Just A Tools And Functions Salesperson?

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

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

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

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

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.