Joecool Headed To Vegas?

 Joecool is headed for Vegas.  I'll be staying in downtown Las Vegas at Circa.  I used miles for my airfare and I got some comps for rooms and some meals.  I just have to not "lose my ass in Vegas"  :).  

In the meantime, I'll leave this article on financial freedom:

When people see the Amway plan, it sort of makes sense. You need to find six people to go direct, in 2-5 years and you have residual and willable income for life. You are then financially free and can spend your days walking on exotic beaches while checks keep coming in. This is what lures many prospects to take a better look and maybe even test the waters and give Amway a shot. After all, who wouldn't be interested in financial freedom and the ability to fulfill some of your ultimate dreams? Only a fool would turn down such an opportunity right?

While Amway looks good on paper, too many things derail this plan for financial freedom and untold wealth. Over the years I've been blogging, I've challenged Amway supporters to name a couple of people who are financially free and walking the beaches while income rolls in. Very predictably, nobody has identified a single person who achieved some high level in Amway and is sitting back relaxing while money keeps coming. We even see crown ambassadors passing away while still working the business.

So why can't IBOs achieve what they aspire to? Because in my opinion, the odds are stacked against them. Sure, a rare individual might go diamond but the occurrence is very rare and almost as rare as winning the lottery, even though Amway is not a game of chance. I will go and list the reasons why IBOs are playing a game they can't win, even though they think they can. That is the sad part, that the upline is motivating downline to "never quit" even though they will "never succeed".

The system is set up for very few to succeed. Even in the common 6-4-2 plan where everyone did enough to earn a bonus, there is one person at the highest level with 78 downline who earn less. In real life, most IBOs do little or nothing. At Amway.com, you can see income disclosures that show how few people reach the higher levels. It's a tiny fraction of 1% that reach the higher levels. Even reaching platinum is a lofty achievement and platinums might not even see a net profit due to business expenses.

Business expenses such as product packs, catalogs, cds, books, voicemail and functions add up to significant expenses in the course of a month. If you're hoping to achieve financial freedom, you'll be expected to participate in the teaching system and more than likely, these expenses will be the reason for your business losses. Beware of upline who encourage you to go in debt to purchase training.

The products in general are not competitive. Sure, the Amway IBOs may give you some pitch about products being concentrated or of high quality but let's face it, consumers don't care about high quality soaps and household cleaners. There is nothing wrong with the similar products that you can purchase at Target or WalMart at a fraction of the cost. When your products can't compete on a level playing field, on what basis do you expect to sell these products? For that reason, many IBOs become "self consumers" and wind up with no actual customers.

Amway's reputation is soured. Most people know or know someone who had a bad experience with Amway. Due to past IBO behavior, people have developed a negative view of Amway. People being tricked or lied to in the past may have contributed to this issue. Add that to the fact that so few people actually make money turns this business into an almost insurmountable challenge. Even those who achieve often find themselves out of qualification shortly after.

For these reasons, my conclusion is that the Amway opportunity is a game that IBOs simply cannot win, even for those who learn from upline and put forth tremendous effort. And the longer you play. the bigger your losses become. Do your due diligence before undertaking any business opportunity.

Debt?

 One thing that many Amway/WWDB IBOs tout is how their upline teaches them to get out of debt. While on the surface that sounds like an awesome thing to do, it's not what WWDB mentors are actually doing. They want to give the appearance that they have your best interest in mind and that they want you to succeed. At least that's what they want you to think. Sadly, many IBOs get sucked into believing this. I will go on to explain why this is and to give prospects and information seekers some food for thought.

If you have an open mind, you will see my point. Prior to someone joining Amway, they most likely didn't buy any Amway products and certainly didn't focus on spending about $200 to $300 monthly on buying household products, especially if they are single people. So how is buying more stuff than you used to, supposed to help you get out of debt? All you are really doing is sacrificing things you used to enjoy to spend on Amway stuff. If you actually made a net profit from your Amway business, that might be okay. But most IBOs are making nothing or losing money while being taught to never quit or that success is right around the corner.

If your upline or mentor is teaching you to get out of debt, are they also advising you to invest any "extra" money into investments? Are they teaching you to plan for the future, in case the Amway business doesn't pan out? Are they advising you to save money? More than likely, the answer is "no".

Your upline will be advising you to use any money you have available to invest in tools and functions. WWDB premiere club, download audios (at a charge), standing orders book of the month and attend all functions. You will be advised to do this even if your business has not made a cent in profit. But you say your sponsor or upline loans you tools and pays for your functions? That might be true, but guess what? Once you sponsor someone, you will be the one loaning tools (that you paid for) and/or paying for your downline's functions because with a downline, you are now a "real business owner". It's amazing how so many people get fools into believing that upline wants you out of debt for your own good. Upline wants to out of debt for upline's good. For that reason, you might be told to get to the next big function at any cost, no matter what. That your business will be set back months or years if you miss it. The reality is missing a big function might be your wisest financial decision.

Your upline may want you out of debt, but they more than likely have their own interest at heart and not yours. Look at it objectively and ask your trusted friends who are not in Amway what they believe. This is advice from someone who has no reason to lead anyone astray. I experienced this and fell for the trick as a young and hopeful dreamer. Now I am hopeful that my experience can prevent others from falling into the trap that I fell into.

Upline Credentials?

 I 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 sufficient evidence of financial success. Telling the audience that you buy homes in cash is not 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 financial  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 some critics 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 Amway 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 photo copies of checks. IBOs and prospects should take this to heart and ask upline the tough questions

Time And Money?

 Time and money. When you control both, you are financially free. At least that's how the Amway business was pitched to me as a prospect. It made sense at the time. If you have enough money, then you don't have to have a job and go to work every day. Having enough money allowed you to control your time. It sounded like a great deal to sleep late every day and not have any financial difficulties. It sounds so simple. Join Amway, 2-5 years and there you are. But can anyone name a diamond who did the 2-5 years and walked away to enjoy financial freedom? I can't think of a single one. I did see diamonds and crowns quitting or dying on the job.

But for most people, joining Amway (and the systems)ironically robs you of what you desire most. Time and money. For those wanting to build a business, you may be told you need to invest in your business, and while that may be true, I do not believe there is any bonafide evidence that can support the relationship between the investment of time and money into the Amway business and earning a significant income. Many people have invested years and thousands of dollars (or much more) into the business only to end up with nothing or massive losses. My sponsor was a physician who spent many days away from his practice (lost income) and his oldest child (son) probably didn't see him very much since he was out showing the plan every nite. You can make more money but you can't ever get back lost time.

Diamonds give the appearance of being filthy rich with nothing to do but golf and go shopping but we are now seeing evidence that diamonds may not be all that. Home foreclosures, bankruptcy, former diamonds speaking out, diamonds moving their groups out of Amway, diamonds possibly selling their homes and downsizing. I believe that there are possibly many - a - diamond who is in financial difficulty and they have not escaped the tough economy as they may have implied in a meeting. Many Americans are living in debt. Why would diamonds who show off a lavish lifestyle be any different? Seriously, think about this very carefully.

Also, if diamonds were so free and filthy rich as they like to portray, why don't any of the bigger pins ever walk away from the business and live on the beaches of the world that they like to talk about? Why are they always attending and running functions? I am guessing that most of them are working these functions - because they have to. I suspect that some of these diamonds are in debt trying to portray a lifestyle that they truly cannot afford. A diamond lifestyle seems to be one of luxury and excess But can a few hundred thousand dollars a year provide that? It's clear that even many professional athletes who make bank, wind up broke or in debt within 5 years of retirement. Maybe that's why diamonds can never retire. But they pretend to "love" their downline and keep working?

If you are joining Amway to gain more time and money, I urge you to make sure you are keeping track to see if you are gaining time and money, but if you look carefully, you will probably find that what you desire more of, is what you actually have less of. That is, time and money.

Millionaire Thinking?

 A comment left by an anonymous site visitor:

"I love Amway. I just don't understand why people have to be negative about it. I don't hurt or steal from anyone yet I make money. I'm not a millionaire as of yet but working towards that goal. It's called "millionaire mentality". Joecool, you will never succeed with penny mentality."

Joecool's commentary:

Most diamonds do not have a millionaire mentality. If you see how they spend money and how they flaunt excessive wealth, I see people who could win the power ball lottery and wind up broke. They might earn a nice income (even if it may come by lying and deceiving), but they spend it all, and possibly more by portraying the diamond lifestyle. In my opinion, the diamond lifestyle as portrayed in functions such as "dream night" are not sustainable for this reason, we are now seeing evidence of this such as a triple diamond who participated in chapter 7 bankruptcy proceedings, diamonds losing homes to foreclosures. We are seeing diamonds selling their mansions. Sure, they might be downsizing or liquidating their assets, but if these homes have been paid in cash as they claim, why sell them in a bad real estate market? Why not wait a few years?

In the past, I have posted some articles showing the traits and characteristics of millionaires. Many of these articles cite saving, investing, and living below your means. Many wealthy people drive regular everyday cars and live in the suburbs. They don't commonly have Porsches, and jaguars. And for the record, the average diamond income, as reported by Amway, isn't all that much when you factor in business expenses and taxes. So why do diamonds try to show off wealth?

I believe diamonds show off wealth because it is a way to attract recruits. Because the Amway opportunity has a high turnover rate, nobody can reasonably "walk away" from their business and have cash rolling in for long. Attrition would eat away your business in a matter of days or weeks. It is why I believe diamonds do not walk away from their businesses, because they can't afford to. The business requires constant attention, or it will crumble faster than stake cookies.

Most IBOs are simply fooled into thinking they are developing into having a millionaire mentality. An honest question for IBOs. How do you even know if your upline diamond is a millionaire? Anyone, even a broke guy can wear a nice suit and show off pictures of mansions and sports cars. For that matter, how do you know if your upline diamond is currently qualified as a diamond? Amway doesn't release that information except for new pins.

In my opinion, diamond's displays of excessive wealth and luxury portray something, but it's not the millionaire mentality.  It's interesting but flaunting wealth is not necessarily a trait of millionaires.

Just Make More?

  One of the things my (WWDB) upline frequently told us, was to "just make more money". This was about how our lives are impacted by rising prices of things. For example, a friend of mine who works for a gas company has said the price of gas in the US is likely to keep rising until it exceeds $10.00 a gallon. Your Amway upline will probably just say you need to make more money by working your business harder. My upline certainly did.  But what does it mean to work harder?  Reading more books, attending more functions or many of the upline recommended activities are non-income producing activities.  The only things that make you money are selling goods and services for a profit, and to sponsor downline who actually move some volume. 

Now for most IBOs, you are likely losing money due to the "system" consisting of books, meetings, standing orders, and functions. You cannot simply "make more money" just because you want you. There was a time when I had that mindset, because it was taught by WWDB leaders. Amway was supposed to be the answer to that problem, but for most, the Amway opportunity ends up being the reason for more debt rather than a way for people to make more money. You are programmed to think you just earn more money to solve financial issues, if only you will "be core" and work your business hard. Sadly, most hard working IBOs will end up with "less money" because of the advice of their trusted "mentors and business coaches".

Ironically, in WWDB (my former LOS), some of the leaders and mentors may have been exposed as frauds as some of them experienced financial problems, including home foreclosures, thus exposing them as liars and frauds as many of these very leaders stood on a large stage claiming that WWDB diamonds pay cash for everything and that people who make loans are "stupid". Makes you wonder about the integrity if such leaders. These leaders are for the most part, still teaching this garbage today.

You may think earning more money is the simple answer to many of your problems, but you are unlikely to solve these problems by attending functions and listening to standing orders. Seriously.  Instead of blindly following upline advice, do the activities that generate income, not ones that cost you money such as standing orders and functions.

WWDB Lies?

 Joecool was an Amway IBO in WWDB back in the late 1990's. I got into the business because a close friend had gotten in and had achieved the "direct" level, now called platinum.  He told me it was "easy" and that he could guide me and mentor me to do the same thing. I didn't really know too much about Amway but I trusted my friend and believed he could lead me to the riches he talked about. I had a bad experience with Amway prior to that where I was invited to a cocktail party/beer bust only to find out it was a board plan. It kind of pissed me off and left a bad taste in my mouth.

But my friend was a direct and I could use his experience to do the same. It sounded like a good deal on the surface. I saw "the plan" and decided to sign up. I signed up and went all in. Based on my sponsor's advice, I got on standing order and book of the month club. I also dedicated myself to attending the functions. I didn't realize how much these functions would cost but it was supposed to be worth it. Afterall, nobody succeeded without tools (a lie). My sponsor told me that nobody succeeded without tools and that Greg Duncan, a multi millionaire, said that tools are vital, but you can try to succeed without them. (I believe Mr. Duncan filed for chapter 7 bankruptcy in 2009 or so). Being a newbie, how could you not follow that advice?  

At the functions, I was also told that WWDB was a nonprofit organization (a lie) and that profits were used to make future functions cheaper (a lie). In fact, some of the WWDB leaders stood on stage and proclaimed that NOBODY MADE MONEY ON TOOLS AND FUNCTIONS (a big lie). Eventually, WWDB leaders admitted they made money on tools but were never held accountable for their lies and they never really explained how you qualify and how much you earn from tools.  WWDB leaders simple re-write history or don't mention the falsehood they previously told.

Some WWDB leaders spoke and taught how long you could skip your mortgage before foreclosure, all so you could attend that next function. They were so nice to even teach how long the electric company might allow you to skip paying before you got cut off. They even recommended you quit your job if you could not get time of to attend a function. They said you could just get another job.  That's such a farce because an employee who invested time into a company can't just quit and easily go to a similar position with equal pay unless the job market is hot and your position is in high demand.

They also LIED and said that WWDB IBO's had a 2% divorce rate as compared to 50% for the rest of the country. Talk about bullshit. The WWDB diamonds alone had a greater that 2% divorce rate, not to mention that nobody that I know of is actually tracking divorce among WWDB IBO's. Nobody really cares but when WWDB leader LIE and make these claims, nobody questions them.

I wonder if these charlatans even own the mansions, cars and jet skis they show off on slideshows at the functions where they pretend to be financially free with money to spare? Ever wonder why these diamonds never "walk away" from their business? Maybe they can't afford to?

The Problem With MLM?

 Interesting article I came across:

http://www.thechangeblog.com/my-beef-with-multi-level-marketing/

1. The Products and Services Do Not Add Value

The meeting I went to for the first opportunity was held in a large movie cinema. There was a flashy movie presentation, and then a procession of people gave us their MLM success stories. After this meeting for newcomers, there was a training session for existing marketers. Since my friend was staying for this meeting and I wanted to better understand this opportunity, I stuck around. It was an eye-opener.

In this training meeting, I came to understand that the opportunity basically involved reselling the services of a telecommunications company. It became obvious that it offered little to no value to the potential customer, as the service was in no way cheaper that simply having a contract with the telecommunications company. The trainers encouraged marketers to divert queries regarding the benefits of the service with phrases such as “you will be doing me a favor by doing this” or “you will be helping my dream of working for myself come true”.

In regard to Amway, I’m sure there is nothing wrong with their products. But is anyone actually buying Amway products because they are the best quality and/ or value? It seems to me that most people purchasing the products are doing so because they are wrapped up in Amway or feel pressured to by someone (yes, I’m sure there are some exceptions). This leads me onto my second problem with MLM.

2. MLM Strains Relationships

Now from what I observed, MLM in many ways has a cult-like following as people get heavily wrapped up in the idea of making “passive residual income”. The income model closely resembles a pyramid, and for this reason success with MLM is heavily dependent on recruiting further people to join. In this sense, everyone you know – friends, family and work colleagues – become potential recruits and sources of income.

As I’m sure you can imagine, someone who becomes too wrapped up in MLM is going to be extremely annoying. In this way, MLM can strain, and can even permanently damage, relationships with the people closest to you. And remember, in many cases it is going to be questionable whether MLM products and services do actually add any value.

Final Thoughts

As should be obvious from this article, these are my opinions only. I am only familiar with the MLM opportunities mentioned, and I happily admit that I did not get involved with them past the first presentation. I am very open-minded, and I’m sure many people have good experiences with MLM. MLM is often linked to personal growth, and I’m sure many people gain confidence and learn valuable networking lessons getting involved. That said, if you are involved in MLM or are presented with an opportunity please consider my points above, try to cut past all the hype that is likely to be associated with the presented opportunity, and use your own mind to decide the value of the opportunity.

A Little Humor?

Some humorous quotes I've collected during my blogging years.  I enjoyed these.  Hope you do also! 

"Strictly speaking, all make money, regardless. Zero is a real quantity. So, making zero money is like making zero money for it is measurable. If zero were irrelevant, why does the decimal system make use of this quantity? Just as the digit one has its virtues so does zero. Hopefully though, you are looking at more than zero if you like to play with numbers. If you don't, zero is a perfect, neutral choice. But don't complain about it to others! It's your choice!"

"Plus people get annoyed because the Amway people they know try to recruit them and sell them things, taking advantage of personal relationships to build their business."

"just about anything they can peddle out the door to the sellers who purchase it at inflated prices who then make money when the people under them sell the junk to somebody else who has been swindled with the "dream" of SCAMway. It is a pyramid scheme but they get around that with a few legal manuvers. They hold these giant pay your own way in rallies that consist of a bunch of oversexed hair sprayed bozo's manipulating people with motivational speeches."

" So he comes over and, you guessed it, tried to sell us on amway, both buying the products and becoming one of his sales "associates". We pretty much asked him to leave as politely as we could. Yes, this really happened and yes, we complained to the school. Amway people are some of the most brainwashed cultish people I have ever talked to. Right up there with boshbots"

"Another guy saying the economy and stock market were going to collapse and our only hope for the future is Amway since 401Ks and IRAs will all become worthless. Most of the tapes were full of religious right bilge too. I dropped out after finding out how much money the DeVos family donates to Repugs."

"While all you broke losers are going to work I will be sleeping in. I will make sure that I hire you to clean my toilets. And don't worry I will make sure that you get good benefits"

"The thing is, is that the higher-ups don't make their money on selling products, they make their money on selling audio tapes to the newbies, and intermediates. You know, the kind that supposedly will help you "sell better" ect... Anywho, that's my experience. They're all really just creepy."

"Early 90s. Friend of mine keeps hinting about his new "business," and how I need to "get on board." He is very coy and will not tell me the name of the company. Wife and I spend next two hours telling him, "This sounds just like that Amway crap," proceed to tell him every horror story we know about Amway, and essentially grind the Amway name into the ground. He leaves and I run into his brother a few days later. His bro asks me, "So, has my brother tried to sell you that soap stuff?" "Soap stuff?", I ask. "Yeah. He's selling that Amway crap." Never heard a peep from my friend about his new "business" again."

"Just admit that you didn't have the 'balls ' to build this business.
I going to be retiring in the next 6 mths making $5000 a mth. So eat that crybabies!"

"Yes, I am! My first cheque was $ 7.85 and my second cheque in going to be more. Why? Leverage! I just signed up my first business partner as part of my up until now, a one man team. Besides, he has someone who wants to sign up too. That's exciting news! I change some of my buying habits and I help others build business by teaching them how to do the same."

"For your information buddy, my last check was $ 15.66. That is more than eight, don't you think? So yeah, you can pass by $ 15.66 too on your way to financial freedom for you are not stuck at $ 15.66 just because that's the top money one can possibly ever make!"

Walking Away?

 I have heard or read that Amway has something like 3 million IBOs worldwide and several hundreds of thousands of IBOs in the US and Canada. Over 60 plus years, Amway must have had tens of millions of IBOs. One of the selling points that many people use in promoting Amway is how you can build your business once (and right) and walk away from the business and collect residual income forever, willable to your future generations and recession proof. At least that's how it was presented, and still apparently presented these days. And that is the draw for many. That you do the work and do it right and reap the rewards forever.  Then you can "walk away" from the business and collect residual income forever right?

What I find extremely odd is how these Amway retirees seem to vanish off the face of the earth. I mean the diamonds either quit, resign, or continue to work. Even all the crown ambassadors are still working or died while still working the functions. Seems odd that someone can have the option of walking away from their Amway business while boatloads of cash keep rolling in. Freedom to golf, travel, have fun and do anything you want, whenever you feel like it. But why do diamonds quit or resign? Why don't any of the big pins exercise the option to walk away? Various defenders of Amway claim there are many people who have exercised this option, but nobody has been able to name even one of them, let alone a few of them. Keep in mind that the folks making this claim are likely lying or making it up because only Amway would know who is getting paid, although Amway wouldn't know what kind of effort was made to maintain the business. In other words, claims of people building an Amway business and then collecting significant residual income is a claim that cannot be substantiated, not even by Amway. And I will say this: Amway doesn't advertise this as an IBO benefit. Current IBOs and prospects should think long and hard about this. If this were a true benefit of Amway, I'm sure Amway would shout about it from the rooftops.

I know of retired firefighters, teachers, lawyers, doctors, government workers, accountants, business owners and just about any occupation you can think of. A friend of mine recently retired from a construction material salesman position. Most of them have their homes paid off, and live comfortably on pensions, savings and other assets and investments. They are not dead or broke by age 65. Sure I do know of some people who are around the age of 65 who are not doing as well financially, but none of them are starving, needing government assistance or working at Walmart out of necessity. I believe the is a scare tactic used by Amway promoters who want you to think that your only hope for financial security is by running an Amway business. Sadly, for most, the result is net losses in Amway because of the "systems". And I might add that the diamonds are likely to be earning significant income from these systems. Food for thought.

I've asked before, I'll ask again. 60 plus years, possibly tens or hundreds of millions of IBOs. Where are these Amway IBO retirees? Do they actually exist or are they as legendary as the Sasquatch?

The Big Fallacy?

There has been much debate over the years by both critics and Amway IBOs and supporters over an issue regarding a WWDB Dream Night function. The issue was an honest question over the cost of a Dream Night Ticket. Well, needless to say, the IBO in question ended up deciding that his blog will no longer accept comments. And while that is certainly his right, he made a statement that IBOs may be told, but makes no sense. Here is the statement:

"Here is a tip when doing research, if you have a question about a company why not give the actual company a call? Wow what a concept."

While on the surface, that me seem logical. If you have a question about how a company works, that might make perfect sense. But the Amway opportunity, along with the attached motivational tools companies, make that a touchy situation. What are you supposed to do? Call WWDB and ask if they are a good company? Call WWDB and ask if they scam downline? What if you call and ask WWDB if most IBOs on their system make money or lose money? If you look at the average income of the majority of IBOs and factor in expenses such as voicemail, standing orders and functions, I can only conclude that the vast majority of IBOs on the system have to be losing money. The longer you stay in the system, the more you lose. Furthermore, I believe there are more people winning the power ball lottery in the US than the number of new WWDB diamonds emerging in the US in the last twenty five years ago or more.  At least in Hawaii, I only know of one (1) new diamond since I left Amway and that diamond is a female (Yamamoto). 

Imagine if you had questions and simply asked the person? Hello? Mr. Al Capone, I heard you were a gangster in charge of organized crime. But I thought it would only be fair if I got the answer directly from you. What's that? You're not a gangster and you go to church? Okay, I see. Well, that clears that up. Mr. Capone is not a gangster, I confirmed that by asking him. Do you see the ridiculous justification of just asking the person in question? Isn't a better way to ask a neutral third party that has no dog in the fight?  

Many Amway IBOs will also suggest that you check with the better business bureau. Well, Amway has a good mark from the better business bureau. But Amway isn't selling you voicemail and other support materials right? That would be WWDB, BWW or some other motivational group, or a particular double or triple diamond, whose business may not have been registered or known to the better business bureau.

I believe IBOs, information seekers, and prospects can find a ton of information on the internet using google or other search engines. Upline leaders discourage this because too much frank and disparaging information exists about the Amway opportunity. But much of that information is real life true experiences. I was an up and coming "mover and shaker" in WWDB. This blog reflects much of my real experiences and the realizations I came to after having left Amway and WWDB. Sadly, my experience was not a good one, but more and more I see evidence that what I was taught many years ago is still taught today, and by some of the same leaders. I hope my experience can help others.

Buy From Your Own Store?

 One of the apparently common practices among major IBO groups is still the concept of "buy from yourself". I believe IBO leaders teach this because most people are not familiar or not comfortable selling goods and services. Therefore, to teach buy from yourself makes the business an easier sell. In reality, an Amway IBO is simply a commissioned salesperson with no benefits. But presenting the opportunity that way is unlikely to yield results either, thus the buy from yourself has become a common practice. It sounds like something that most people can do, rather than emphasizing the need to sell to people you don't know, not to mention the endless cycle of recruiting downline, something that many IBOs are unable to do.

Buying from yourself makes you a customer and not a business owner. Buying from yourself doesn't generate your business a profit. Would you open a car dealership to buy a car? Now I am not suggesting that supporting your own business is a bad idea. What I am suggesting is if you are the primary or exclusive customer of your Amway business, then you aren't really running a business. You are simply a glorified customer. I believe some or many IBOs fall into this category because they are simply unable to move a sufficient amount of products to non-IBOs to make actual business profits.. 

What an IBO is really doing is paying his upline's bonuses. Amway overcharges more than 30% of the cost of their product. They have to do this in order to be able to pay IBO bonuses. Since most IBOs are at 100 PV or less, the lion's share of the bonuses earned are channeled upline when a purchase is made. It is not a level playing field as some IBO leaders might suggest. Also, some of your uplines who don't even know you might benefit from your efforts. Now that's residual income, right? 

What compounds the situation and makes it worse is when an IBO pays for standing order or attends functions where some of these IBO leaders may teach this bad business practice. You as an IBO already overpay for products for which upline gets most of the bonus, but then the problem is made worse by IBOs paying to receive this bad advice. When I was an IBO, I heard speakers talk about skipping rent or mortgage payments to attend more functions, or having your family skip a meal so you can buy standing orders. Buying from yourself is just another example of bad advice given from upline to downline. What makes it worse is that some uplines profit by giving bad advice. 

Are you buying from yourself almost exclusively? Can you think of any truly successful business where the owner is the main or possibly the only customer? I can't think of a single one.

Why So Many Believe?

 Many IBOs cannot be convinced that Amway is not the best opportunity in the world, because they want to believe the lies/deception that is often used when they are recruited. They want to believe that 2-5 years of part time effort will result in lifelong residual income and that they will be traveling to the beaches of the world while cash keeps rolling in. They want to believe that they can ditch their (often) less than adequate jobs. They want to believe that a part time soap business will make all of this possible. The people (upline) who claim to have everyone's best interest at heart will sell them a proven system of success and all they need to do is follow the steps to success.

Many people sign up for Amway and do absolutely nothing. They may not ever order or try products. But these folks do not complain about Amway and the expenses they may incur are minimal. Most do not even bother to seek a refund on their starter kit. It makes me wonder why these folks even bother to sign up. Although, there are stories of people being pestered into registering. Anyway, the part where this business gets dicey is when people register and do put in an earnest effort, only to end up with financial losses. Sometimes the losses are in the tens of thousands of dollars. You get squeezed for a couple of hundreds of dollars a month and after a few years of effort, you can find yourself drowning in debt, even after doing everything your upline advised. The fact that uplines don't disclose their business financials speaks volumes. Former uplines who have come forward have shown that most of their income was from hawking standing orders and seminars, and not from Amway sales as they would imply.

I bought into the hype at one time. I believed the lies. I believed my upline that no profit was made from tools. At the time I was an IBO, I too, wanted to believe that I could work part time for 2-5 years and ditch my job. That I would retire at the age of 35 and live in luxury forever. I wanted to believe that. But having reached the 4000 PV level, the precipice of platinum, I also realized that I had no profit. I sat down and did the math and realized that they would be little profit at platinum. I came to the realization that a second job would have suited me better. I finally quit when I realized this, along with my upline wanting total control of my life. But I hung in as long as I did because I wanted to believe that Amway would be the vehicle that delivered my financial freedom.

Having dropped out of Amway, my life quickly got back to normal. Friends that I had avoided returned to my life. My disposable income increased, and my cash flow was positive once again, now that I was no longer obligated to purchase tools. I also noticed years later that the same old leaders on stage were still working as hard as ever, and none of them had taken the option to retire and walk the beaches of the world. Perhaps these leaders also want to - or have to believe in Amway because they have already invested too much time and effort to call it quits and start something else. I wanted to believe, but the fact is that people were not succeeding. People were not getting free. What I saw was home foreclosures, bankruptcies and financial struggles made worse for people because of Amway and the tool systems. And apparently, these same issues apply to the diamonds. Do your research and you will likely find the same conclusion that I did. That Amway is an impossible dream.

Building A Business?

 When I was an Amway IBO, many people would talk about "building a business". But many folks who spoke about building a business didn't actually know what that meant. I believe it is because they were taught that building a business meant listening to cds and attending functions. Or building a business might mean sponsoring others. In my segment of the Amway world, building a business pretty much meant recruiting and showing the plan. Apparently, I was misled and many others were as well.  

Building a business, generally speaking (in real business terms) means building a customer base. A business moves products and services for a profit. In groups that focus on buying from yourself or prosumer nonsense, generally will struggle because the revenue they generate in their business is coming from their own pockets. Or their jobs are actually supplying the money for their own bonuses. In this model, the only way to profit is to sponsor many downlines so the pyramidal compensation plan can work in your favor.

Many IBOs compare themselves to a franchise. Can you imagine a true franchise where your long-term success depended on your ability to open other franchises? What if you as the owner and your family accounted for the majority of the sales? Could this franchise survive? More than likely not. Yet this is exactly what many Amway IBOs do and they mistakenly think they will be successful. The only reason why Amway IBOs are able to play out this model longer than a traditional franchise owner is because they do not have to rent office space or hire employees.

If an Amway IBO ran their business like a traditional business, the lack of retail sales to non-IBO customers would be immediately apparent when the first month's electric bill or lease payment arrived.

Building a business entails many things. These things may include advertising, marketing of products, and do not necessarily include any training. In its simplest form, the Amway business is about selling and using products and getting others to do the same as you do. Why do IBOs think such extensive training (standing order and functions) is needed? I challenge IBOs to write up an actual business plan for their Amway business, including projected sales and expenses and see what you come up with. If you think I am just being negative, write up your Amway presentation and show it to a loan officer at a bank. See what they have to say. Seriously.

Anway Makes Me Nicer?

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

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

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

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

So IBOs, are you a nicer person? Is it evident by your words and actions? It doesn't appear to be very clear to me, especially IBOs such as David Steadson or Bridgett Baron. :-)

Independent Business Owners aka IBOs?

 IBO = Independent business owner. I thought it was cool to own my own business, but looking back at the bottom line, IBOs are just salesmen for Amway with no fringe benefits and no guaranteed salary. Or a commission only salesman. Salesmen earn their income by selling goods and services and earn a commission. Sadly, many Amway IBOs sell very few items because they are commonly taught that you make your money by purchasing items from yourself and recruiting downline who do the same.  If you find "six", you could be wealthy right?

On the surface, buying from yourself sounds sensible but you don't truly make a profit by purchasing your own goods, you simply empty your checking account. Any profit you think you have earned has actually come out of your own pockets. In any business, you must have a base of customers in order to have a steady income. If you are purchasing the majority of your goods, you are only making a profit for Amway the corporation, who makes, or in the case of partner stores, distributes the goods. The ones who actually produce the goods are the ones who profit. An IBO is just someone who sells the goods and who distributes them for a commission.  In other words, the IBO is the middleman that upline claims they eliminate when they show the plan.

For most "real" business owners, building their business might mean advertising, create special sales, and increase the number of customers or by increasing the volume purchased by existing customers. An IBO who is "building the business" is rarely ever trying to attain more customers. In fact, some of Amway's regulations make it difficult to attain a mass of customers such as restrictions on advertising. Therefore, most IBOs who are "building" are simply seeking to add downline who will hopefully buy their PV and also attain more downline. In this manner, IBOs are increasing volume, and therefore their commissions by adding people to their downline. Ultimately, the upline is making their money by the efforts of their downline and often, from the jobs of their downline because there are usually not enough customers to sustain any significant level of sales. This basically makes the Amway opportunity a product pyramid.

In this day of social networking, social media and power advertising, Amway apparently remains a dinosaur. While they do advertise some of their product line on TV, the salesmen or IBOs have little ability to market their products on a large scale. Instead, it is word of mouth, individual to individual. It is highly ineffective. Do you know why it costs hundreds of thousands of dollars or millions for a 30 second commercial in the super bowl? It's because tens of millions of people or more are watching from around the world. What do you think is more effective on increasing sales, a super bowl commercial or word of mouth advertising. Keep in mind that zany IBO behavior has already damaged the Amway name, thus giving you a disadvantage over other opportunities.

In the end, or the bottom line is that an IBO is just a salesman who receives no fringe benefits, and a relatively small commission. It's a great deal for Amway, but is it a great deal for an IBO?

The Negative Truth?

 One of the silly things many Amway 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 Amway IBOs walk around wearing a mask with a false smile, trying to appear 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 time span, approximately 50% of IBOs will quit in the first year. That is the truth.

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

Less Time And Money?

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

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

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

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

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

Money For Nothing And Your Chicks For Free?

 I'm quoting the show "Shark Tank's" Kevin O'Leary when he is referring to the upcoming election of the NY City Mayor.  The upstart Zohran Mamdani still leads the polls for this race and I believe some business leaders are rallying around just about any other candidate who might be able to beat Mamdani.  Mamdani has promised to turn NY into a socialist city with no jails and no police, among other things.

This could be a preview of someone destroying a once great city.  But if we just look at other similar candidates such as the mayors of Chicago, San Francisco and Minneapolis, you can see that these policies are bat sh@t crazy.  It's amazing that people actually vote for these candidates.  But as Mr. O'Leary says, you promise "money for nothing and your chicks for free".  The younger generation seems to be attracted to universal income where you get money for not working, and promises of free stuff.  I believe many universities have been infiltrated by bat sh@t crazy professors who teach this stuff.  Countries that turned socialist like Venezuala went from the thriving prosperous country into poverty and despair.

My sympathies go out to the victims and families of the victims in the recent NY city shooting.  But here's the point.  Mamdani wants no jails and no police, to replace the police with social workers.  How will social workers stop a gun toting crazy?  If you were a social worker in NY, would you want the job of handling what used to be armed police officers?   Now Mamdani is walking back some of his claims for no police because it seems unpopular.  I find it ironic that he walks the street with armed security while advocating for no police and no jails.  This is why I always say watch what politicians do, not what they say.

Mamdani also wants to eliminate billionaires.  But if there are no wealthy people, where does the city get the revenue to fund all the "free stuff"?  People not working but getting income, housing and free bus and/or subway service sounds great until you run out of money.  That's always the problem in a socialist society.   Something like 40+ % of people pay no net federal taxes now.  The vast majority of taxes are paid by the wealthy and the middle class.  The people getting "free stuff" eventually becomes an incentive for working people to not want to work and get free stuff. themselves.  Why work hard when you don't get ahead and the lazy get the same lifestyle as you for not working?  Why work extra hard to make money when there's no reward?

So yeah, promising "money for nothing and your chicks for free" might help you win an election, but be careful what you ask for.  you might get it.    As a little food for thought, try finding out where these politicians live as compared to the people they represent.  They aren't living in the lower income neighborhoods or walking around unprotected from the crime going on in the streets,

Living In Denial?

 It is a very sad thing indeed, to see so many Amway IBOs living in utter denial. Most IBOs are probably good and hardworking people, but they get taught misguided and unethical things by their upline and as a result, many IBOs end up living in denial.  Too many IBOs put too much trust in upline and don't actually scrutinize what they say. Many IBOs are losing money because of their dedication to the tools system, but they are taught that never missing a function or buying more tools makes you successful. Or they are taught to ignore facts if they have a big dream. These kinds of teachings are contrary to the basics of running a business. Even monitoring profit and loss isn't taught.  I recall our diamond saying he just made a big (accounting) mess, but it was worth it, because after all, he's now a diamond.  What about the rest who aren't?

Even when an upline leader may have been caught with their hand in the cookie jar, these leaders simply revise history or deny confirmed allegations, and the faithful downline simply ignores the issues. It seems that many IBOs believe that their uplines walk on water. Of course, these leaders are human, as many point out, but I will also point out that their perceived divinity is a big factor in their sale of training materials, thus they should be held accountable for their actions and their actions should be held at a higher standard than a rank-and-file IBO.   For example, some diamonds were found to have mortgages after saying they pay only cash for homes.  Or diamonds who pretend they never got divorced and tried to rewrite history.

For another example, I still see IBOs denying that a prominent diamond was in bankruptcy proceedings despite the fact that there are public documents confirming this. I still see Amway apologists claiming that certain things are not taught by upline anymore, but IBOs bloggers still talk about misguided teaching, such as how Amway or WWDB IBOs have a lower divorce rate than the general public, even when one of their leaders apparently got divorced recently. It's scary how many IBOs apparently don't believe their own eyes and ears.

It's apparent that many IBO are simply in denial. They believe they are successful even when losing money month after month. They believe that their leaders can do no wrong. They believe that they will succeed if they never quit. They often believe that naysayers of Amway are broke or losers. But the facts are there. It is a fact that the vast majority of IBOs on the system lose money. It is a fact that the average IBOs earns less than the minimum wage. It is a fact that most IBOs cannot or do not sell many Amway products. It is a fact that some upline leaders make most of their money selling tools to their downline. It is a fact that some upline leaders lied about tool profits in the past and may still be lying about it. These are some of the facts about this opportunity. You can believe it or deny it but look at your bottom line. If you are losing money, are you successful or in denial?

I Can Outearn My Sponsor?

 One of the humorous defenses that Amway supporters use to defend their business is that it must not be a pyramid or it must be legitimate because you have the opportunity to earn more than your sponsor. While many downlines in fact do earn more than their sponsors, it's likely "most IBOs do nothing" or because about half of all IBOs quit in a year or less those who stay for even a year, when you factor in the business expenses for those who are on tools, the reality of suffering business losses also causes people to exit the business. It's not that hard to earn more than people who quit. But even at that, someone who quits is often better off than IBOs who continue because those on the system are losing money.

An IBO at the 100 PV level will earn about $10 in bonus income from Amway.  If they are attending functions, buying standing orders and voicemail, they will almost guaranteed operate at a loss. Thus, unless their business grows each month (highly unlikely, even if they do as upline advises) then they will suffer losses each month and those who quit will be better off. It is why I have stated that doing nothing or staying home and watching television can honestly be better options than joining Amway and the systems such as WWDB, N21 or BWW. It is why reasonable people can conclude that working for minimum wage, even a few hours a week makes you better off than joining Amway and the systems.

The defense that someone can out earn their upline is silly. The true benchmark of this statement would be for a new guy to start a business, and in 2-5 years, out earn someone like a crown ambassador. It will never happen because upline has direct influence over the fortunes of their downline, even at the diamond level. It is why you have seen diamonds quit or split from their upline to start their own training systems. They cannot affect change from downline, without upline consent, thus the breaking away from their "mentors" or leaders. At times there have even been lawsuits between diamonds over the tools income. Do people really sue their mentors? Don't diamonds teach you that suing people is wrong? That you don't get something for nothing?

You can surely out earn your sponsor. All it takes is for your sponsor to quit. However, your sponsor quitting might mean you don't out earn your sponsor. See my example above. Taking losses is not out earning someone. Keep in mind that everyone in Amway is equal. You are all unpaid commissioned Amway salespeople, bound to Amway's terms and agreements. You don't own your downline. You don't really own much as an independent business owner. You can out earn your sponsor, but that means squidly diddly when your sponsor makes nothing or takes a loss. Come back and chirp when you out earn your upline diamond. Do I hear crickets chirping now? :-)

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.  And why would things change?  What significant changes has Amway made to the business model?  The compensation plan is the same.  

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, and mostly likely business losses 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.  Amway sales peaked at one point some years ago, (At just over 11 billion I believe) but it has never reached that point again, as far as I know,

Amway also reported some years ago that they have updated their average IBO income. While it is still miserable, ($202 a month, including diamonds) 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?

Get Rich Slow?

 One of the things upline used to say was that Amway is not "get rich quick". I suppose they say this because most people would more likely think scam if they promoted it that way. (I believe Amway is a scam) Ironic, but when you stop and think about it, 2-5 years, build it right and you have willable, residual income for like while walking the beaches of the world? That's not get rich quick? Or is it more of a disclaimer so that the opportunity doesn't sound "too good to be true"? One thing is for sure, even if uplines tell you that it's not get rich quick, it's obvious that IBOs think they will eventually get rich, even if it's not quick. Amway leaders have said "Amway is get rich slow".

What most IBOs don't figure out quickly enough, is that they are unlikely to even make a profit, let alone getting rich from Amway. How many of these retired Amway people exist? Where are all of these retired Amway IBOs who built a business in 2-5 years and then walked away from their business and will be collecting a significant residual income for many years to come afterwards? I don't know of a single person who has done this and none of the Amway defenders and zealots I have encountered over the years has been able to supply this information either.

I can acknowledge that Amway is a business opportunity and will definitely take some work to be able to achieve something. But thinking realistically, what business could you actually be able to walk away in 5 years and not work again? More than likely that business doesn't exist, whether it's Amway or not. Say you opened a conventional business. There wouldn't be many scenarios where you could walk away after a number of years. The business would still require work and maintenance. But for some reason, people are misled to believe that you can do this in Amway where there is a high attrition rate and where your business can only expand by person to person, which is quite inefficient.

Sadly, many of the people who are attracted to the Amway opportunity are often young people looking to get more out of life. They are often ambitious but may lack a means to gain wealth, thus the appeal of the Amway opportunity is there. Unfortunately, these nice young people are more likely to end up channeling their hard-earned dollars into standing orders and functions which will almost guarantee that they end up with a net loss. The bottom line is that not only is Amway not get rich quick. The more likely scenario is that your involvement with Amway will very likely be not getting rich at all. A net loss is the most likely result. The real-life results and Amway's own disclosures suggest that I am spot on.

Why IBOs Lose Money?

 One of the big things touted by many/most/possibly all upline leaders as the "key to success" is CORE. I have outlined the elements of CORE here. I believe most AMO groups teach CORE as the key to success.

1 - Show the Plan

2 - Retail the Products

3 - Tapes/cds/audios

4 - Books

5 - Functions

6 - Accountability

7 - Counsel with Upline (Be teachable!)

8 - Buy 100% of your own products

9 – Communikate (voicemail)

In these nine steps, only #2 (selling stuff) may actually net the IBO a profit, but this step is not emphasized in many groups. Some leaders gloss over this step and instead, promote "buy from yourself". In all the other core steps, you either spend time and/or money doing things that do not produce income for your business. If you, as an IBO spend most of your time in non-income producing activities, guess what? You will suffer losses. It is no wonder nearly all IBOs lose money, they are taught to spend most of their time in activities that do not produce income!

Imagine owning a brick-and-mortar store where you open the store for one hour a day. The rest of the day you are reading books, listening to tapes/cds/audios, and paying to attend seminars and listening to voicemail messages and recruiting others to "do the same".  Oh, and in addition to opening your store for an hour a day, you don't advertise except for word of mouth. Could you survive in business? I think not. Amway now advertises, but you are not Amway, you are an independent business.  Broken down this way, how do Amway IBOs seriously they can turn even a small profit, never mind getting wealthy from the Amway business?

So, can an Amway IBO make money by spending most of his/her time in non-income producing activity?   I believe the answer is quite obvious.

Recruiting?

 What does the HR department is a company do? Recruit? That's what I was told when a diamond speaker was trying to downplay the fact that so many Amway IBOs are focused on recruiting. If you've ever been accosted by a zealous and probably new Amway IBO, you'll probably know what I'm talking about. Newly sponsored IBOs often have the motivation and zeal to try to recruit anyone and everyone they know. They are trying to achieve what upline has told them is needed to accomplish their "dreams". Afterall, nobody is going diamond or even platinum without an army of downline right?  But are IBOs the HR department for Amway?  Food for thought.

But upon closer inspection, you can see the real problem. I mean if I as an IBO could simply sell tons of products for a profit, then my focus doesn't have to be on recruiting, but simply on sales. But over the years, I've unsuccessfully challenged IBOs and Amway defenders to name 1 or 2 people who has sizable Amway businesses sustained primarily by sales and not by recruiting an army. Of course, nobody has even been able to give me an answer. and that's because Amway products are generic in nature but premium in prices. It makes it a tough sell when your friends and family can get far more product and value at a retailer at a fraction of the cost of Amway products. Try doing an open-minded price comparison and you'll easily see what I mean.

For these reasons, upline developed the concept of buy from yourself and get others to do the same. People generally do not like selling things anyway, so it makes sense that a concept of buying from your own store makes the Amway business seem more palatable to the masses. Of course, the problem with this method is that you end up focusing on recruiting and you've turned Amway into a pyramid scheme. Look at the ruling re: FTC vs. Herbalife. They found that a majority of sales were not made to actual customers but appeared to be made to the distributors themselves. Herbalife is required to track these sales now and it's yet to be seen how this FTC injunction will impact Herbalife long term.

But if you're a prospect or an IBO and focused on recruiting, then you are likely doing so because you too, are unable to sell Amway products just like all the critics claim. Oh, I've heard stories of people having hordes of customers, but nobody has ever shown evidence of such nobody can answer why the "diamonds" seemingly have large groups of downline "buying for themselves". Like the mysterious "Amway retirees" that no one can identify, nobody has been able to identify a few successful and sustainable Amway businesses that relies on product sales primarily. It's because the majority of groups are basically focused on recruiting and running what I can only describe as product pyramid schemes.  

Upline Accountability?

 Part of what Joecool perceives as the problem with the Amway opportunity is the utter lack of accountability of some upline leaders. They may tell you to trust them, to submit to them and simply copy or duplicate what they have done, and they imply that you will get the same results. Possibly millions or tens of millions of downlines over the years have put in blood sweat and tears into the business only to suffer massive losses following the system. Upline will take credit for meager success but place the blame on the downline when success is not there. Upline will claim that they either did not try hard enough, were not teachable enough, or they didn't put in enough time and effort. Despite a shockingly low success rate of system IBOs, nobody seems to fault the system as being flawed. And nobody seems to question whether upline is at fault. I believe it's obvious that the system and the upline advice is severely flawed.

In my observations, I would say that many financial systems are similar. Whether it be BWW, N21, WWDB, real estate gurus or other systems, the success rate is extremely low. Many systems that advertise on television will have a disclaimer that a success testimony is a rare or unique experience. I believe it is similar to the systems in Amway. Dedication or continued spending on the system is not the problem. The problem is often the system itself. It can work for some exceptional people. These people were likely to succeed in other venues anyway. The problem is that is does not work for the majority of people. People who succeed in Amway likely succeed in spite of the system and not because of it.

The bigger problem, is that for many years, some uplines have lived high on the hog off of the dedicated tool purchases of their downline. All the while, questionable or bad advice was given to the faithful downline. Advice such as quitting a job to attend a function, skipping financial obligations such as the rent or electric bills to buy more tools. One upline even said your family can skip a meal because the standing order may contain the one thing you needed to hear to make your business grow. I have personally seen couples lose their homes and go bankrupt because they followed upline advice. Upline to "has their best interest at heart". Granted, the couple has some culpability in these decisions, but uplines who give this advice seem to get a pass.

Where is the accountability? Some of these uplines who give and gave bad advice, are still active today, and some are still giving bad advice to their downlines. Advice that profits upline and drains downline. Even with valid complaints, it appears that many uplines avoid any accountability. For some, perhaps there is poetic justice, such as diamonds having their homes foreclosed. But as many uplines have nobody to hold them accountable, do you really want to do business with these folks? Would you invest your retirement money with a broker who could not be held accountable? Would you have your car repaired by a shop whose mechanics could not be held accountable? I believe the answer is not to these questions, yet many people are asked to trust and follow the advice of an upline who is not held accountable for their advice.

The system is credited for the few successes that are visible, but the individual is held accountable for any shortcomings or failures. IBOs, I encourage you to hold your upline leaders accountable for the advice they give you. If they won't answer tough questions or take responsibility, then one should wonder why the upline should be given your trust.

Most Fail?

 Most IBOs fail. That is not a wild guess. That is a fact. Failure would mean doing nothing or trying hard and not making a net profit equal to minimum wage for the hours expended. Amway supporters will argue that many IBOs do little or nothing, and while that might be true, even the remaining IBOs who work hard, still find little or no success. The system is set up that way. If you see a diamond "walking the beaches" as the cash rolls in, that means someone is putting forth the effort to make that happen. It is the downline IBOs who purchase Amway products and tools that allow these diamonds to enjoy what they portray as success. By the way, does anyone actually know one of these diamonds who are retired and doing nothing while cash rolls in? 

We also know that some diamonds overhype their success. There has been evidence that the diamond lifestyle is often not what people think it is. If you could truly earn residual income by the bucketload, why do diamonds quit, resign, lose homes in foreclosure proceedings, and even wind up in bankruptcy court? One could argue that some diamonds are failures. The diamond lifestyle is an illusion created by upline leaders as a means to entice recruits. I would venture a guess that many diamonds are living in debt or struggling to make ends meet. 

Many Amway zealots and apologists try to make ridiculous claims comparing a company owner to a diamond. The big difference is that a company owner has employees who get a regular paycheck. These employees generally wanted the job and probably applied for the work. And if and when an employee leaves, there are other applicants who are willing to step in and do the work. Thus, the business continues to meet their demands and continues to profit. 

In the Amway opportunity, the IBOs spend money purchasing products, and then upline leaders expect these same folks to spend even more money to learn how to be motivated to do the Amway business. But in reality, if IBOs made profits, that would likely be sufficient motivation to run their businesses. Because it is hard to find enough (suckers) prospects to join the business and fork out cash while they lose money, other IBOs have resorted to trickery, deception and outright lying at times, in order to attract potential downlines. This has damaged Amway's reputation. 

The 6-4-2 system ensures that the majority of business builders must "do the work" to uphold their platinum, who (probably) barely earns a net profit. And then you need 3 or 6 groups of IBOs losing money in order to maintain an emerald or diamond. Amway has revealed that less than 4% of product moves to non-IBOs. The absence of non IBO customers nearly guarantees that most IBO groups will lose money or make very little. Most IBOs are destined to fail. And it is not necessarily the IBO's fault. The system itself comes with many flaws which most IBOs cannot overcome, even for those who put forth much effort. It is why most IBOs fail. It is why I hope prospects will find and read this information before making a final decision to sign up or not.

Trust Upline?

 Over the years, I have encountered many Amway IBOs and they often have a common theme. They trust their upline and in some cases, consider them mentors. Some IBOs go so far as to trust their new mentors over trusted friends and family. (This is also the insidious part of this whole scheme) Now in a business venture, it might be good to have a mentor or someone to guide you, but in the Amway opportunity, most of the upline mentors make money off those who they mentor. That is a major conflict of interest but IBOs simply fail to see it.

When an IBO sees the plan in a big meeting, the speaker will often be built up as a financial genius, and possibly as an expert on how to succeed in Amway. An IBO may hear something about the trail was already blazed by upline and you just need to follow the trail. Don't re-invent the wheel, just duplicate what upline has done. But as I have said many times before, duplication sounds easy and looks good on paper, but in real life, the vast majority of IBOs run into problems that they simply cannot overcome, such as the bad reputation that the Amway name has in the US or trying to justify the ridiculous prices of some Amway products.

What is troubling however, is that IBOs are taught to trust upline and do as they say (defacto requirement), but they are also taught that failure is their own shortcoming, even when they do exactly what upline told them. It is also troubling that many uplines will tell their faithful followers that they need to purchase more and more tools (voicemail, cds, seminar tickets). In some cases, an upline may advise their downline to sacrifice basic family needs to buy these tools. Some IBOs were advised to skip meals to buy a cd, or skip paying the mortgage to be able to attend the next big function. I personally witnessed IBOs in my crossline who followed upline advice to their own demise (home foreclosure and bankruptcy). Sure, IBOs are culpable too, but the upline had the gall to give that kind of advice.

I might also add that as a newer IBO or prospect, you may have heard that "everyone starts at zero", or that it's a level playing field. It is not. As a new IBO, you will likely be in the 100 PV bracket. Since Amway pays out about 31% in bonuses, your upline(s) will split up about 28% in bonuses off your efforts while you get a 3%bonus. That doesn't sound very level to me. You also do not make any money from the tools. That is reserved exclusively for higher level pins.

So, each Amway IBO should look at things objectively and see if your upline is helping you or simply helping himself by giving you advice that ends up in profit for himself with little or nothing for you. You might be surprised to know the answer.

Empty Promises?

 One of the things I often thought odd as an IBO was how our upline would keep teaching us that the Amway business was all about "helping people". Somehow, our upline felt that showing someone the plan or talking to them about the Amway business was helping someone. That is because our upline felt that everyone was ultimately doomed for financial failure if they didn't join Amway. Of course, nothing could be further from the truth now that I am looking back. In fact, I would have to say that building the business and purchasing tools was the CAUSE of financial disaster for some of my fellow IBOs. I remember reading about more than one home foreclosure and a couple of bankruptcies out of my cross line group.

It's like IBOs held some dark secret and they could save the world by sharing this secret with prospects. So the theme of many voicemails (Amvox at the time) was about how IBOs in the group were saving the world by helping people. I used to wonder how we were helping people when we basically only "helped" IBOs who wanted to build the business. If someone declined to join, they were forgotten and referred to as broke losers. Our upline said we threw them a life preserver but they rejected it, so we are moving on. it was often compared to a church activity where IBOs are saving souls. I actually found this extra weird because we were often taught that we could give the church money in the future ($10,000 checks) and we could serve in ministry after we were "free" because we went diamond. I find this ludicrous now, but at the time, we were told that this was delayed gratification. After I left Amway, I spoke to the senior pastor of my church and he opined that Amway was harmful to many because it simply held too many empty promises. In other words, they promote big dreams and wealth, but very few ever attain any success, for whatever reason. The pastor said the reason for the low success was not relevant. The fact that it was rare to see success was enough to conclude that Amway was not a good opportunity. He said MLM in general basically sold false hopes and dreams.

In fact, some diamonds can be seen as prosperity preachers. They speak about wealth attained through Amway when in reality their wealth may come from other source, such as tools income, yet they falsely promote Amway as their primary source of success. Then they bait and switch IBOs and tell them that the tools system is the only way to succeed, all the while profiting handsomely from the tools. They then justify their conflict if interest by claiming that IBOs are helping people and/or doing God's work by joining Amway. I believe many IBOs are giving false hope and promises to prospects as taught by upline leaders. All the while they themselves are losing money while thinking they are supporting a noble cause. I hope they awaken before it's too late.

Crticism?

 Why does criticism of Amway continue Ad Nauseum? Because Amway has not taken any apparent visible action(s) against higher level IBOs who make their living by ripping off unsuspecting prospects and faithful downline by feeding them lines about how easy it is to build an Amway business and how they can ditch their jobs and live on easy street. I saw it and there are countless testimonies and experiences posted on the internet.  What's more, some of these teachings are recorded and memorialized, but still no apparent action.

When I was an IBO in WWDB, we were fed outright lies by upline. Nobody made any money from tools being the biggest. Downline were taught how long they could string out their mortgages or electric bills so they can attend functions and buy more tools. Yes, IBOs have culpability as well, but the culture of these groups is one of trust and loyalty to the diamonds. Amway's owner, Mr. DeVos acknowledged this in his 1983 speech "directly speaking". But despite the speech, no apparent visible action was taken, thus status quo continued. Even the accreditation system which seemed nice on the surface appears to be a farce. I believe that possibly millions of people over the years have been adversely affected financially because of some of these Amway IBO leaders.

Many of the same leaders who lied to benefit themselves are still at it. A fellow blogger named "Rocket" once reported a possible violation where crown ambassador and IBOAI member, Brad Duncan is caught on tape claiming that IBOs can make "hundreds of thousands of dollars" a month in Amway. Your response was to make non sensical remarks and then eventually no response when pressed for one. I also reported a WWDB IBO who was making disparaging and false statements about some competitor's products while making misleading positive statements about Amway products. Your response was no response, and my comment wasn't even published on your "Amway Answers" blog. Ironically, one of the topics on that blog was about how Amway doesn't turn a blind eye to problems. Yeah, you can say it, but your actions show something else.

Maybe someone can explain why actions in other countries indicate that the folks who sell Amway tools are scammers. For some reason, the regulatory agencies in the US have not taken notice of the tools business. The Dateline segment in 2004 exposed the tools and systems. It became a big debate on the internet with critics and proponents. While Amway can claim innocence because the unethical actions were taken by IBOs, or "independent" business owners, I still believe that Amway has a responsibility to reign is some of the sales force that represents them.

Food for thought: Joe Paterno was an assistant and head coach, an icon at Penn State University for more than 60 years. He was fired years ago because he had knowledge of child abuse occurring at the program under his watch. While he was not personally guilty of this and did many good things for Penn State and the community, still his inactions may have caused harm to befall innocent children. Ultimately, he had the ability and power to stop the wrongdoing but did not. It is a sad ending for a man who many consider a legend. I wish his family well.

Amway can reign in the tool abuse and take control of some of the bad leaders but apparently has not and will not. 

Passing Judgment?

 One of the things that my upline taught, and I believe is still taught today in various groups is that winners join Amway and losers do not. Or that you were a winner because you were doing something to better your financial future and those who didn't were losers. or broke minded. Of course the upline who said this had no knowledge about those who were not in Amway. Some of them may already have been financially sound or may have been doing something to better their financial future. I'm not sure why these uplines, who promote "positive", had to resort to calling people losers simply because they did not agree that Amway was the greatest thing since sliced bread. It's only positive if it's Amway related and anything non-Amway is negative. Anyone see a problem with this?

In many games or sporting events, there will be someone or a team that wins the game and someone or a team that loses the game. Losing a game doesn't make you a loser and certainly, a team that wins the game would not say the losing team were losers. Can you imagine a Superbowl winning team's coach taking the podium after a game and saying his team won because the other team was a bunch or broke minded gutless losers? That would never happen, yet we see that frequently in the Amway/IBO world. The owner of Amway, Rich DeVos had once said in a recorded message that just because people do not agree with you (paraphrased) about Amway, does not make them losers and that IBOs should not call people losers. I believe this has been crafted by upline to apply pressure to downline IBOs to "never quit'.

In all of this, people's jobs are also criticized. That a job stands for "just over broke" or "jackass of the boss" and other insults. Many IBO's goals and dreams consist of ditching their job so they can sleep until "the crack of noon" and live a life of luxury. Ironically, it is most IBO's jobs that continue to produce income so they can pay their bills and feed their family. It is also an IBO's job that funds their Amway and AMO expenses such as product purchases and functions and voicemail, etc. Without having a job, most people could not even join Amway or pay for any tools. Sadly, most IBOs won't make any money in Amway either, and will have to continue to work at their jobs. I do not believe that someone earning an honest living working a job is a loser. Ironically, many of the folks calling people losers and broke are not even netting a profit from their Amway business!

Yes, in this business or the sports world, there will be winners and there will be losers. The question is whether you are the one who is allowed to be the judge of who is and who isn't. I would also suggest that IBOs are completely shutting down potential future business by their behavior. What if I went to a store to purchase something but the item was not available on that particular day, so I don't purchase anything and leave. As I leave, the store owner says I am a loser for not buying something there. Will I go back? Very unlikely. If an IBO truly sees themselves as a store owner, all prospects should be seen as potential business, whether future or present. If your upline tells you that people not interested are losers, you should hand him a mirror. Or inform your upline that when you point a finger at someone, there are even more fingers pointing back at you.

Information For Prospects?

 When I was an IBO, my upline used to advise us to recruit people who had a financial need or young people who were open minded as they may not have preconceived ideas about Amway. When I was recruited, I was not where I wanted to be financially as I was in my 20's when I first got recruited by my sponsor. I believe that this is still common practice today, to look for people who are in need and then offer Amway as a solution. Sadly, Amway and the tools systems will more likely become a problem than a solution for the vast majority who try.

In my opinion, this is why some people defend Amway so fiercely. They accept Amway as their solution for long term financial stability and to admit that they were in error is difficult as it would not only expose the error but would leave the IBO as not having that "hope" of long-term financial freedom. It's hard to admit you got fooled or scammed and some people will dig in and press on, hoping that success will eventually come. Hope is a powerful thing after all. However, for most, it is false hope that is pitched in recruitment meetings and functions.

Many prospects see big dreams when the diamonds parade on stage with designer suits and talk about waking up at noon and enjoying a lifestyle chock full of luxuries. It's almost like dreaming about hitting it big in Las Vegas or winning the lottery. I can't fault prospects for wanting some of these things. I know I certainly had some of these same dreams when I was an IBO. The problem is that Amway is highly unlikely to be the vehicle that delivers these dreams. For most, a second job along with saving and investing will bring more long-term success. The problem is that people don't like to wait for the long term and Amway is presented as a short cut to success.

The sad reality is that some (maybe most) diamonds are simply putting on a show, like a illusionist or a magician. Diamonds may indeed earn a six-figure income, but after taxes and other expenses such as medical insurance, a diamond is very likely to live a very middle-class lifestyle. Now I'm fairly sure that a crown ambassador type may have a million-dollar income, but these Amway crowns are very rare, and the ones who exist have been in the business for a long time. There is not much chance of any new IBO coming in and achieving that level. In fact as time rolls on, it seems that more diamonds drop out due to divorce, better MLM opportunities or simply quit. It is apparent that long term residual income is a myth. Why do crowns seemingly keep working (or die on the job) if they could "walk away" and live a life of luxury with no worries?

Amway reports that the average IBO earns $202 a month. I believe that number is also questionable as "most" IBOs (as shown in 6-4-2) actually earn more like $9 or $10 a month. Is this what you are signing up for? Don't forget about the ongoing expenses for tools and functions which results in net losses for most who get involved.

Amway prospects can benefit by knowing this before signing up.