Joecool Headed For Seattle?

 I'll be out of town for about a week.  I'm going to Seattle this weekend to attend a certain football game.  All at my own expense, no Amway residual income.  LOL.  I'll be back posting early next week.  

In the meantime, I have this blog post called "Is Amway A Scam"?

The short answer is no. Amway the company is not considered a scam.  However, IBOs powered by Amway and/or leaders from groups connected to Amway such as WWDB, BWW, or Network 21 can end up scamming people by using the Amway opportunity as a front. They'll promote Amway as a way to earn a lifestyle of the rich and famous. They may promote Amway as a means to earn lifelong financial security. The catch will always be that you need to follow their system.  The system has been referred to as a scam by many over the years as it is often the reason why 

The system normally consists of cds, voicemail, standing orders, books, functions and seminars. Some of this technology is outdated, but likely has not changed in many years because uplines profit from the sale of these "tools". It's basically a bait and switch. They lure you in with the hopes and dreams of a fabulous life and uncountable amounts of cash rolling in. They then sell you the secrets of gaining these trappings. Sadly, only a tiny fraction of 1% will ever see any kind of significant success. And out of those who do enjoy some significant success, many of these people find out that Amway success may not be sustainable.

The truly horrifying result of all this is that probably 99% or more people who have dreams of a better life and financial security will actually end up with a net loss of money and time that they could have used more productively. In my IBO days, I saw some crossline lose their homes or enter bankruptcy following the advice of their trusted upline mentors. It almost always had something to do with skipping out on financial obligations in order to buy more tools or to attend a major function. The secrets of a diamond lifestyle is apparently to sell standing orders, functions, voicemail, but not necessarily selling Amway products, at least for the higher ups.  

If you look at the earnings of platinums and diamonds, you will easily see that those kinds of incomes cannot sustain million dollar lifestyles, especially when you factor in business expenses such as traveling (first class?) and hotel stays. If diamonds fly first class everywhere they go, that's a lot of cash to run their businesses.

So, is Amway a scam? No, Amway the company is not a scam, but Amway IBOs and Amway IBO leaders who run functions can certainly scam you. Beware!

 

Most Do Nothing?

 I saw some recent discussion and some people were debating the average income of Amway IBOs and how $202 a month (average IBO income) as reported by Amway is a lot considering most IBOs do little or nothing. Well, that $202 a month average income survey many years old. Somewhat laughable when Amway defenders like to hang their hats on the possibility that Amway critics claims are outdated. Maybe Amway defenders should complain that Amway's own information is old and outdated. I wonder what updated numbers would reveal?  An even smaller average income?   

Also, what many people are not aware of is that the average income figure as published by Amway, excluded IBOs who did nothing. It only counted "active" IBOs, although Amway's definition of active can leave you scratching your head. Amway describes active as someone who attended a meeting or attempted to sell products. However, we know that unless you actually sell something, you won't make anything and certainly attending a meeting takes money away from you, and is not a way to earn money in Amway. Let me also add that Amway diamonds are also a part of the average income so the "average" is very likely inflated by the six-figure income of the diamonds.

To me, the biggest question is why do so many IBOs get interested enough to sign up and then do nothing? It is my informed opinion that there are several reasons why this happens. I believe that some IBOs are such pests, that their prospects sign up just to get their IBO sponsor to leave them alone. While it may not be common, I believe it happens. Also, I believe some IBOs go into shock when they see the prices of some products. This will cause newbies to realize that the business is nearly impossible before they even get started. Or, a new IBO will go and talk to family and friends about Amway and will get shot down because in North America, just about everyone seemingly had, or knows someone who's had a bad experience in Amway. Sadly, the experience may not be a result of Amway the corporation, but of unethical IBOs who may lie, cheat or trick people into attending meetings. Some IBOs actually get started but soon realize that that Amway opportunity along with the systems such as N21, WWDB or BWW, simply becomes a money pit with the tools and system expenses exceed the monthly Amway income. A few IBOs will bite hard and stay dedicated for a few years or more. Many of these IBOs end up reporting losses that may exceed tens of thousands of dollars.

Sadly, many IBOs and prospects are recruited by family and friends. Thus, even if they quit or have a very bad experience, they just quit and disappear. Folks generally will not file complaints with Amway or the Better Business Bureau (BBB). So IBOs, even if you did little or nothing in Amway, if you got ripped off or treated unethically, you may want to consider filing a formal complaint with Amway or with the BBB. So why do so many IBOs do little or nothing? I believe the answer is crystal clear. Most IBOs do little or nothing because it's not worth the effort for most as very few IBOs will ever attain any kind of significant income. In fact, doing nothing is likely to get you a more favorable result than someone who attends the functions or who subscribes to standing order because doing nothing is cheaper than being an IBO and paying for tools and functions.

The Real Scam?

 A lot of people come and go in Amway, but many of those who come and go don't even notice the scam. They get sold on what they believe is a business opportunity that they can makesome money at, or at the very least save some money on products that they would normally buy anyway. If they do it right, they can possibly make some "real" money and with some had work, you can build it right and have the option one day of walking away from Amway and living off ongoing residual income from Amway. It sounds reasonable and therein lies the scam.

For years, I have challenged people to name 2-3 people, aside from the Amway owners, who joined, built the business "right" and was able to walk away and retire with ongoing residual income, enough to be financially free forever. Not a single person has been able to name and confirm that even a single person has done this. I believe it's all a lie and part of the scam. Amway's distributor force turns over about 50% each year. How can you build a residual income empire when half of your downline quits each year? I believe Amway diamonds trade their 9-5 jobs for the night shift. They work at night and into the morning hours because they are working to replace people who quit and to support downline platinums who might struggle or fail to re-qualify for that level. If upline says they are working for the love of their downline, I call BS on that. If walking away and enjoying life was an option, why hasn't anyone chosen it?

Now you could argue that a diamond's "work" isn't that bad and they aren't reporting to a boss. And that would be true, but I imagine the pressure of churning people in and out to keep qualifying can be stressful in itself. If you live on an island like me, you can eventually have trouble finding new people to work with. In 1997 or so, there were a bunch of diamonds in Hawaii and they all moved to the mainland. Now I"m not sure why but my upline diamond was Harimoto, who loved the ocean and the beaches. Yet he moved to Washington state. I believe they needed new grounds to mine, just like gold miners.

The next part of the scam is how IBOs will tell you about Amway's generous money back guarantee. 100% they'll tell you. What they don't tell you is that the guarantee is only on some of the products and the sign up fee. The cds, books, voicemail and functions are not sold or run by Amway. And these expenses can be very significnt over a period of time. IBOs and prospects need to know this. You can lose thousands and get back pennies on the dollar asking for a refund on the sign up fee and perhaps a few products. Another piece of the scam.

Also, IBOs and prospects are often shown only the very best case scenario (such as going diamond) but not told that your chance of being struck by lightning is much higher than your chance of going diamond, even though going diamond is not a random event. A real life and likely scenario is getting in and trying hard for a while, and then quitting with some business losses. At least if you know this and still try anyway, you will have done so with full disclosure.

Lastly, it's insidious in my opinion, for upline to tell you to trust them and to do as they say, and then turn around and tell IBOs that failure is their responsibility. That they didn't work hard enough or do thing just right. That sure isn't what they are preaching when recruiting you into the business. They are saying how sharp you are and how you're likely to tear up the business. But it's just another facet of the scam. I've outlined the parts of the opportunity that I believe are scams, but I'm sure it's not limited to my point of view.

Good luck if you read this and join anyway.

Amway Creates Millionaires?

 I keep hearing from some IBOs that they belive that Amway has created more millionaires than any other company in the US. I call BS on that claim. I am not saying that Amway hasn't created any millionaires, obviously, the Amway owners are worth billions of dollars. But what the IBOs are apparently implying is that the diamonds are millionaires. I'm sure there are some diamonds who indeed are millionires, especially if they are tenured diamonds, in particular the double diamonds and higher. But conversely, I believe that many high level diamonds are not millionaires. I believe it is just as common for a diamond to be in debt as it is for a diamond to be living large. I also believe that many diamonds did not accumulate their alleged wealth exclusively from Amway.

The reason why this is an issue is because these big pins will stand on stage and show off excessive wealth and imply that it is their Amway income that pays for these mansions, sports cars, and in some cases, jets. In the US, I attended a function called "Dream Nite" where these kinds of trapping are displayed, to the tune of the song "I wanna be rich". The diamonds would say that you can have what they have, if only you will do what they advise. These functions still go on today and I believe it is now called Winter Conference.

Stanley and Danko's book, "The Millionaire Next Door"
http://www.personalfinanceplaybook.com/2009/08/the-millionaire-next-door/

This book makes some very interesting points which I believe applies to Amway diamonds. I will outline the significant ones and I will comment below:

**Predictably, the data shows that most people who you believe to be very rich are not.

**High net worth individuals, statistically, tend to be people that live within their means. They don’t spend a lot of money. They don’t waste money. They tend to be pretty frugal people.

**The authors point out that most of the richest people you know aren’t driving expensive luxury automobiles. That’s what the people who want everyone to think they’re rich drive.

Joe's commentary. The book does say that about 1/3 of millionaires acquired their wealth thru a J-O-B, plus they saved and invested.  They did mention that many millionaires were also business owners, such as a pest control company, etc. But based on the points made by the book above, I can see where it is likely that diamonds portray a wealthy lifestyle as a recruitment tactic, when the reality is they may be living very middle class lifestyles off stage, or may even be in debt. I have seen evidence of diamonds having their homes foreclosed and being in debt (Ruth Carter's book: Amway: Behind the Smoke and Mirrors).  Around 2009 or 2010, there was also a report that a prominent WWDB Triple Diamond filed for chapter 7 bankruptcy. The report indicated that he could not make his mortgages, or something to that tune. Odd, because when I was in WWDB, some of the upline leaders said diamonds paid cash for everything because paying interest to the bank wasn't very smart.  So much for the truth and integrity of upline leaders.

My question is why IBOs continue to make up these claims? Try googling millionaire or Amway millionaire. There is nothing to indicate that Amway was responsible for creating the "most millionaires" of any US company. If this were true, wouldn't Amway state it on their website? If someone finds any veracity about this claim, inform me and I will post it.  More likely tech giants like Microsoft or Nvidia created the most millionaires.   If not, they certainly created more millionaires than Amway.  Not to mention income from tools and functions are a significant portion of a diamond's income and tools and functions are not Amway.  Food for thought. 

Lying To Succeed?

 The first time I was prospected for Amway, I was in college. I actually didn't know much about Amway but I had somehow formed a negative opinion of it. Needless to say, when I was invited to a beer bust and it turned instead to be an Amway meeting, my impression of Amway wasn't that good. Some years later, I eventually did join because a close friend of mine had achieved direct distributor (now called platinum) and he had assured me that it could be done and that he would make sure that I would also achieve it. I did achieve a level just below platinum (4000 PV), but I quit for several reasons. First of all, I didn't make a net profit as the expenses for tools ate up my profits. Secondly, the more I progressed in the business, the more and more my upline wanted control of my life. For example, we were told that we should check upline before getting married, buying a car, or even having children, etc. I thought that was very strange and I eventually left the business for good.

But in the US at least, I believe Amway's name to be so battered that an IBO cannot sponsor downline and build a business without lies and deception. There are hordes of stories confirming testimony that lies and deceit are common in prospecting potential IBOs. This was extremely rampant when Amway changed their name to Quixtar. IBOs would deny the connection or IBOs would say they are with network 21 or WWDB and claim something ridiculous such as Amway simply being their supplier. The promotion of perfect water also brought on silly antics about a $50 case of water being capable of performing miracles. If the opportunity could stand on its own merits, then IBOs would not have to resort to such desperate measures which include lies and deception.

Even the Amway presentation if often filled with deception and lies. I remember seeing the presentation and they said shopping through Amway, an IBO would save 30% over local retailers. When I actually saw the catalogs, I wondered where are the savings?? An open-minded price comparison will easily show that Amway products are not cheaper than a retailer like WalMart. It's not possible when you consider that Amway's bonuses must be a part of their product price.

The 6-4-2 plan or similar variations are made to sound easy, and the presenter talked about lifelong residual willable income, which I also find to be deceptive if not an outright lie. The presenter never mentions that only about 1 in 400 ever reach the platinum level, where allegedly you begin to break even as an IBO if you are consuming training and tools.

But can Amway be successfully promoted without lies and deception? It is my opinion that an IBO has no chance of building a business by being completely upfront and honest about Amway and about being an IBO. Even with lies and deceit, many IBOs still cannot get people to see the plan or to buy products. It is my opinion that overall, very little Amway products are sold to non IBOs. So if you cannot sell products and you cannot get people to see the plan, you cannot build a business and if you are purchasing tools, you are simply digging yourself a financial hole that will only grow larger as time passes. The cost of 100 PV (about $300) is already more than what most families and/or singles spend in a month on household products. This means that most people simply cannot sustain themselves in the business and it explains why most IBOs drop out in the first year.

It is why lies and/or deception are needed for an IBO to have a chance at promoting and building an Amway business. Because the truth is not pretty and more than likely, will not work for building an Amway business.

Your Best Interest?

 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 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.

Amway Failure?

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 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 many years, some uplines have lived high on the hog off of the dedicated tool purchases of their downline. All the while, quesitonable 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.

Millionaire Mentality?

 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 portrays something, but it's not the millionaire mentality.

Build It Right?

 I believe that Amway IBOs have approximately a 50% attrition rate for the first year alone. If you look at a 5 year window, I believe the attrition rate is something like 95%. So, what we're saying is that out of 100 IBOs, only 5 will be around in 5 years, or out of 1000 IBOs, 50 will remain after 5 years. This is extremely significant because if you are a business builder, you will need to replace half of your IBOs every single year, provided you can even sponsor downline.  For this reason, I am very doubtful that there are IBOs who "built the business right and built it once", who no longer do Amway related work, but still collect significant residual income. I would guess that significant income could be defined as being enough to live a lifestyle in the top tax bracket (for the US) without having to report to a J-O-B.

Now I understand that some IBOs take it personally when I bring up subjects like this. It is because they have been deceived by some upline diamond or big pin who has sold them on a dream of financial prosperity for life if they will only work hard for 2-5 years. I once thought so too, but realized that there isn't a single diamond that I know of who built the business right and walked away to enjoy the beaches of the world while truckloads of money rolls in. Kinda makes you wonder why you see Crowns still working, and diamonds actually quitting or resigning. I have asked the question many times and it has never been answered. Can anyone name a few people who built their business right and built it once who is currently enjoying these lifelong residuals? Also, if that were a benefit, why doesn't Amway say so?

Instead, you have a constant and endless flow of motivation being sold to IBOs. This motivation comes in the form of cds, books, meetings, functions and other things like voicemail messages. It's sad that IBOs have to continue to pay through the nose for motivation and "teaching" about the Amway business when there are cheaper and more efficient means of communication. For example, why would you need an expensive voicemail when a facebook group account can disseminate messages to your group in seconds at no cost? It is because the uplines want to extract every possible sent from their downline. Because of the internet, I believe people are starting to figure things out and avoid the systems altogether. I hope Joecool's blog contributes to this.

All the motivation IBOs truly need is to see a net profit at the end of the month. If IBOs actually earned an extra $200 a month, or $50 a month, or $600 a month as advertised, there would be no need for motivational speeches. The IBOs would simply look at the growth in their finances and they would keep going. The poor retention rate is easy to explain. IBOs are losing money because of the system expenses and they lose their motivation to continue. If you are an IBO or a prospect, stop and think for a minute. If you are making an extra $200 a month with minimal effort, would you need functions and other materials to motivate you? Or would you have intrinsic motivation from the profit? All the motivation you will ever need is a net profit. Take that to the bank.

Altruistic IBOs?

 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 business was helping someone. That is because our upline felt that everyone was 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 and functions 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 just within our group.   I recall a specific incident where the diamond had a special "playday", which was a picnic and some fun and games for his group if you currently had a 1000 PV pin.  I recall a crossline IBO with no downline who suddenly got his 1000 PV pin.  I assume with no downline that he simply bought the pin to be able to attend the playday.  This IBO later was listed as someone who had a home foreclosure in the Pacific Business News in Hawaii.  I don't know if buying 1000 PV caused the bankruptcy, but I'm sure it didn't help his finances either.

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. 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". 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 the 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.

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.

Behind The Scenes?

 One of the things that the Amway Diamonds and some other leaders do to attract new IBOs is to put on a dog and pony show. They want prospects to think that you can consume Amway products and get others to follow your lead and in a few years, you will be set for life financially, speaking on stages and securing the future for generations to come. They might use props such as pictures of mansion. slideshows of cars, yets, yachts. It looks impressive but based on what I know now, who knows whether the diamonds actually own this stuff or if they are simply showing you a slideshow of "lifestyles of the rich and famous". The reality is very likely that many diamonds are actually living in debt or bonus check to bonus check. It is a fact that more than half of NBA basketball pros end up broke less than 5 years after they retire, and they earn tons more cash than diamonds. Why would a diamond be different than the average Joe, especially when they appear to live beyond their means?

In the few cases where diamond income was exposed, we can see that they were not making the kind of money they would have you believe.  A Triple diamond (documented) was making about half a million a year from Amway. A nice income for sure, but not what people would think, and not enough to save that diamond from chapter 7 bankruptcy. Another WWDB diamond apparently lost a home to foreclosure. Another diamond, unnamed but documented in the book "Amway Motivational Organizations, Behind the Smoke and Mirrors", talks about a diamond who had a gross income of over 3 million dollars, and a net of about $320,000. This diamond was in debt, had back taxes owed to the government, and was working hard to portray the diamond lifestyle while living in serious debt.

Some of these leaders also use religion or Christianity as a means to justify their involvement in the business. For those who know, the Bible is clear that the love of money can lead to destruction. When you have functions such as Dream Night, what does that say? I would also like to note that in cases where these diamond's financials were exposed, there were no significant contributions to charity. I wonder if these charlatans talk a good game but do not contribute time or money to worthy causes? Where are the ten thousand dollar checks they talk about donating to charity? These leaders often refer to themselves as mentors, but any help they provide to downline results in some kind of compensation for them. This is not a mentor, but more like a paid consultant who is not getting effective results.  

Behind the nice suits and the glitz of the functions, I believe that IBOs and prospects would see a world they truly would not want to be a part of. A world where deceit is practically needed to succeed. Where you take advantage of people who trust in you. Where you pretend to be wealthy and free, but in reality, a slave to the mighty dollar. Where you traded a 9-5 job for a job that works the graveyard shift. If you look objectively behind the scenes, you might see what I see.

WWDB Eagle Program?

 Reprint of a popular article:

Eagle Parameters: Signed Counsel Sheet to Upline Diamond 300 PV personal use/retail for couples, 200 PV personal use/retail for singles 6-5-3 (PB/SO/MF) - Explained below 6 legs at 100 PV or higher 5 legs on standing order 3 legs attending major functions



Being An Eagle Is Profitable?

I have listed the parameters for the eagle program above. I will provide an analysis and some comments about the WWDB Eagle program. In my opinion, the Eagle program is basically just a program where upline assures themselves of a certain amount of tools sales. The IBO with the eagle parameters is likely losing a ton of money.

First of all, an Eagle with minimum parameters/legs would be at about 1000 PV. That would equate to about $200 to $300 a month in PV bonus from Amway, with differences based on width, total number of legs moving volume, etc. For this example, I will assume the Eagle receives $300 in PV bonus.

200 PV for singles, 300 PV for couples. That’s $600 to $900 in personal use and retail sales. While IBOs may attempt to sell products, we know that many IBOs sell little or nothing. Even if an IBO manages to sell 50 PV to customers, that IBO would still be spending $450 to $750 a month on personal use, and perhaps earning $100 a month for selling 50 PV.

6 legs at 100 PV or higher. That is approximately $1800 a month in personal consumption and retail for these downlines. Assuming they each qualify at 3%, they would get about $10 in PV bonus each month. The $10 does not factor in business expenses.

5 legs on standing order. Depending on whether an IBO is on the premier club, their cost might be about $60 to $75 a month (or more) for standing order, and may vary if extra cds are purchased.

3 legs attending major functions. Major functions generally cost about $125 per person, per event. And the expenses does not include transportation which may include round trip airfare during peak travel months, rental cars, hotels, etc etc.



Let’s look at a single IBO with eagle parameters. And I will use “best case” scenario. Income might be $400 with the 1000 PV bonus plus the retail profit for selling 50 PV. $400 sounds like a nice tidy sum, especially for a single person. But looking deeper, we see that this person also had to consume $450 worth of goods for him or herself ($450 = approximate cost of 150 PV). Yes, he or she received products, but seriously, how many single people actually spend $450 a month on laundry soap, shampoo and other consumables when simply “changing your shopping habits?

Additionally, an “Eagle” would have to be a leader. More than likely, simply buying standing order is not sufficient. A leader should be consuming more cds as you cannot listen to the same cd every day. Factor in the books, monthly open meetings, average out the cost of major functions, gas money, and other business expenses. I would say it is safe to say that an “Eagle” would easily spend $300 a month (or more) on tools and other business related expenses (Tools = Books, cds, standing order, meetings, functions, voicemail workshops). If this Eagle has to fly to major functions, then that cost may be significantly higher on average.

So let’s summarize. In a “best case” scenario, an Eagle IBO would spend about $750 a month on products and tools. I understand that products are not a business expense, but if a single person is expected to consume/sell twice as much PV, I would say half of that expense is a business expense as it would be unlikely that a single person would ever use 150 or 200 PV worth of goods in a month. So lets use that case and say that an Eagle has $475 in expenses per month ($175 for PV and $300 for tools). The Eagle receives $400 a month in bonuses and retail income (best case scenario) with the IBO selling 50 PV worth of goods (which is not common).

In a best case scenario, an Eagle loses money! And what’s more, all of his or her downline, if they are also using tools, will also lose money! The only ones profiting from the Eagle program is Amway in the form of product sales, and the upline in the form of PV bonuses and the profit from the sale of tools!

Do you still want to be an Eagle?

Amway Deception?

 For many Amway prospects, there is a deal of deception that IBOs use in prospecting them. Now I don't believe that IBOs are evil or purposely trying to be deceptive, but I believe that many uplines teach some form of deception to unsuspecting IBOs, who in turn use these techniques and, in many cases, contribute to Amway's already battered reputation. There are many examples, but I will just give some of the more common ones.

Take the perfect water fiasco from the past. IBOs were promoting this product as if it were the cure all for any physical ailments, but apparently, it is nothing more than an expensive drink. The cost of one bottle of perfect water can just about get you a case of purified water at WalMart. Quixtar is not Amway. Another example of deception where IBOs tried to distance themselves from the Amway name and reputation. Another big deception was calling the Amway opportunity a private franchise. Amway is not selling franchises and IBOs do not operate franchises. If this were true, there would probably be franchising agreements that an IBO would sign with Amway and Amway would provide the training, not individual groups such as WWDB, N21, or BWW.

Teaching such as "fake it till you make it is also deceptive. Uplines will teach IBOs to fake success as a means to attract people to the business. It is why you might see nice people in suits and business attire at meetings, all the while arriving in broken down cars and trucks. Try getting an IBO to tell you what they actually earn from Amway and watch the uncomfortable or belligerent reaction.

I write this post not only because I experienced much of it, but there is evidence and testimonies out there that indicate that nothing has changed. Amway apologists like to cite critical experiences as "outdated" but fail to point out that these deceptive practices are still more common than they like to admit. If you were prospected or retained in the business by deceptive practices, can you honestly believe that uplines have your best interest at heart, or that they really care about your success? Recently, we have begun to see the hypocrisy and lies of some uplines. Bankruptcy, home foreclosures, terminations, divorces and "quitting" by some upline leaders have exposed the facade.

Sure, diamonds are just people, but they raised the bar on themselves when they made their claims and fortunes on stage. It's time for downlines to hold them accountable for their actions.

The Standing Ovation?

 One of the weird things I observed about Amway IBOS is how they worship the diamond as if he is some kind of divine being.  When you look at it logically, what has the diamond done to deserve such adulation?  The diamond qualified for the diamond pin one time and possibly one time only.  Heck, Joecool was a 4000 pin.   Does that mean new IBOs can or should take counsel from me since I achieved a fairly high level?  Even if I’m not currently qualified?  I believe it's easy to lose your diamond qualification.  If half or more of all IBOs quit within the first year and most IBOs do little or nothing, how can you build a business empire that won't fall apart? 

Amway doesn’t say which diamonds are still qualified so nobody really knows.  And that is why you see former copies of bonus checks as evidence of success.  A current copy of a check would be better but still would not indicate what kinds of expenses that diamond had.  I recall in the early days of running this blog, I inquired with a hotel on Maui, that hosted diamond club for that year, and they said approximately 150 families were in attendance.   So my conclusion is that there aren't that many diamonds as your upline would want you to believe, or these diamonds simply skipped a free trip to Hawaii and a stay a luxury hotel on Maui.  

A good example would be my WWDB upline diamond who probably qualified diamond in the 1980’s.  Back then there was no internet, and the business was very different than it is today.  That diamond also filed for chapter 7 bankruptcy in 2009 or so but is still revered as having superior financial acumen.  But based on what track record?   I might add that this was a triple diamond and because of the bankruptcy, the records were made public, although I no longer have paper records of this bankruptcy.  However, I do recall some significant highlights from the filings;  This diamond made about 500K from Amway and about 500K from tools and functions.  Now that's a great income, but nowhere close to what I though they earned.   And after business and normal expenses living expenses, I do not see mansions paid for in cash, along with personal aircraft and fleets of sports cars.  And really, living large with a million dollar gross income is a recipe for debt.  Just like professional athletes who go broke after they retire.  While diamonds may not stop working (so much for walking away to retire), I can see many scenarios where they can get into debt themselves or living bonus to bonus.

For some reason the audiences just assume that the diamond is successful and wealthy without really knowing the financial status of these leaders.   For all we know these diamonds are paying mortgages and in debt like the rest of the US population.  Why would it be any different when these diamonds show off a lifestyle of excess and even encourage IBOS to get into debt to purchase tools and function tickets.  If you ask upline to verify their financial claims you’ll be told it’s none of your business.

If your diamond’s financials are none of your business then you should not consider displays of wealth as any kind of evidence of success.  More likely that diamond lives check to check like much of the rest of the population.  What other conclusion is logical?

No Statues Of Critics?

 I often heard the saying in Amway: "there are no statues of critics". To that I would respond, there are no statues of Amway diamonds either.

I often wondered what the Amway opportunity would be without any critics. Most likely Amway IBOs would be blissfully building their business while blindly following upline advice to over consume PV and Amway related tools and functions. If you are in WWDB, have you noticed that your upline is often tracking how many audios you are sending downline and how many people you have attending functions? This is done because upline is trying to plan and makes plans for their projected income. Do the math on a major function and you will easily see what I mean.  What does that information actually do for your bottom line in your Amway business?  Aren't sales to customers more important?

Many Amway supporters think that critics exist only to tear down others or to bash the Amway opportunity. I see it completely opposite. I believe that Amway critics are important for IBOs. Without any opposing voices, IBOs would mistakenly believe that they are in Amway utopia except that eventually, they would notice that they are losing their shirts. An opposing voice is a good thing to bring up issues that you may not have thought of. Imagine what you might be like without the ability to feel pain? You might have injuries or illnesses that would go undetected which could eventually kill you. But you upline probably teaches people to "avoid negative". Avoiding excessive negative might be good but avoiding all negative is like an inability to feel pain.  

When I was an IBO, our upline (and many others apparently) claimed that nobody made any profits from the system (voicemail, books, tapes/cds. functions). Without any opposing voices, this might still be happening. IBOs had no way of knowing back then when the internet was not a common tool. Upline just told bold lies and got away with it. To this day, none of these "awesome" leaders have even been held accountable for the lies. The diamonds simply ignored it. Sure, they now speak about making some income from tools, but there is little transparency about how you actually qualify for a share and how much you get when you qualify. Why is that?

Critics have also pointed out that many IBOs are taught to ignore important facts such as their profits versus losses. Some IBOs are taught "fake it till you make it" or they are taught to "buy from yourself", both of which are ridiculous from a business standpoint. But without an opposing view, IBOs would never question upline. In fact, many IBOs are taught to avoid all negative such as don't watch the news or read the newspaper. In other words, upline wants you to be apathetic and only read and intake their Amway propaganda. This is why some people accuse Amway leaders of running a cult.

Think about this. I believe that having opposing views are vitally important for IBOs to consider. Valid criticism is good for IBOs who are serious about building their businesses. Constructive criticism is a good thing. If you consider good criticism as negative, just remember: As far as I know, there are no statues of Amway diamonds.  Why would valid or constructive criticism be a bad thing?  Because upline doesn't want you to think critically.  Why do you think they are often sleep depriving you by holding night owls and other useless functions?  The only thing night owls did was make me tired at my job the next day.  It certainly didn't help my business get to the next level.  Think about it.