Joecool Headed To Alaska?

 Joecool is headed for some sightseeing, including some camping in Alaska.   I might be in remote areas so this blog won't be updated until I get back around June 10th.  Please enjoy the story below about my time as an IBO in Amway back in the mid 1990's;

When I was recruited into Amway, I was told that I could make money, which would roll in forever and ever. Residual income. That was the concept that appealed to me when I was recruited. I was also intrigued when I was told that I could do as much or as little as I wanted. I winded up signing up for Amway sometime in 1997 or so.  

However, when I signed up, my sponsor told me that I would be wasting my time signing up to sell products (not verbatim). That if I was going to get involved and spend the time, I may as well try to build an organization and make the big bucks. I consented and then he immediately told me that I needed to get on standing order. I was told that standing order was a tape subscription, and it was only $6 a tape. Nobody ever mentioned that every other week, it was a two tape set so basically, you are buying at least 6 tapes (now cds) per month minimum.

After a week or two, I had registered a couple of my friends into the business and my sponsor tells me that I cannot be a leader without attending all of the functions, and that I cannot listen to the same tapes (cds) over and over. That's when my expenses shot up like crazy. Of course, I was excited with the folks I had sponsored so I went along with the plan, and I was edified for it, so it seemed like I was "being an emerging leader" and was propped up as an example of how to build an Amway business.

Amway defenders question how I could possibly spend an average of nearly $1000 in a month for tools. Here's the breakdown, and although my WWDB group experience may not apply to all, I certainly continue to hear similar stories of abuse.  (This story is a reprint from my experience as an IBO, and the numbers in terms of expenses are from back in the mid 1990's.  I'm sure expenses are much higher now)

Standing order $36 a month. (6 tapes a month @ $6 each)
5-7 extra tapes each week $$120 - $168 a month
Amvox (voicemail) $24 a month
Open Meeting $6 a month (plus parking fees)
Regional functions $24 a month (plus parking fees)
Subtotal: $258/month (not including parking fees)

Major functions (4 times a year) I live in Hawaii, and major functions required mainland travel at peak travel times (January, March, July, October).
Round trip airfare $700
Hotel: $240 (for 2-3 days)
Rental car: $150 - 50 per day for 2-3 days)
Function tickets $100 to $150
Meals and other misc. expenses pushed a major function to over $1200 for each trip.

These costs, not including gas money, totals about $8000 a year. Add in the cost of products and you are spending about $1000 a month on Amway. Yes, the products are not a business expense, but then again, how many of those over-priced products would you buy if you were not an IBO? Do any former IBOs still buy double x? Do IBOs actually sell any double x? I believe these customers are rare.

If your sponsor told you that Amway would cost you nearly $1000 a month (higher end, including product) or $100 a month (low end, not including products), would you still join? Once you agree to register, the expenses are then slowly revealed to you and in many cases, called investments into your business. Be wary and ask tough questions as to whether these items help you to make a profit, or whether they take away your profit.

Upine will often lure you in by giving you tools or cds and even paying for your first function or two. But if you show signs of interest or if you sponsor a downline, you will become a "business owner" and you'll be expected to do the same for the downline you sponsor. Amway can become an expensive lesson in why you should avoid MLM altogether. Caveat Emptor.

Working For Free?

 What happens to many unsuspecting people is they join Amway thinking they will attain wealth and riches by "owning their own business", but in reality, they have basically become unpaid commissioned employees of Amway. You don't get health insurance, vacation, or any fringe benefits. You get to work unlimited hours, and you get commission by moving products. You can leverage your commissions by increasing this unpaid sales force by sponsoring others into your downline.

Some people do succeed employing this method, but you will need to be an elite recruiter in order to get people to sell Amway products for no salary. You are also handicapped right from the start because past IBO behavior has soiled Amway's reputation in the US and Canada. This point is supported by the fact that Amway's sales appear to be growing the most in foreign countries and not in North America. Seems that everyone I know has been at one time, involved with Amway (and had a bad experience) or knows of someone who had a bad experience (i.e. tricked into attending a meeting, or deceived in some way about the opportunity or the products).

Even if you are a great recruiter, your likelihood of attaining Amway success (emerald or higher) is a tiny fraction of 1%. And for those who attain Amway success, they have great difficulty in sustaining that level. It is why there are hordes of "former" emeralds, diamonds and platinums.

You may hear about how Amway was found "legal" by the FTC or that Amway is #1 in online health and beauty sales. All of this may be true, but it doesn't change the fact that an IBO is basically an unpaid commissioned Amway salesperson. You absorb all the business expenses, pay for your own training, and you get to share your commission with layers of upline (more middlemen), some of whom do not help your business, and some who don't even know you exist. It's a great deal for Amway but not for IBOs. You move their products and absorb the expenses and in doing so and they pay out a commission. As for any awards or credits Amway receives, it's great for Amway, but you are an IBO - an independent business owner. You are not Amway.

Bottom line - if you can get people to work for free, you can find numerous opportunities to get rich that are much better and more lucrative than Amway. :-)

CORE - How Upline Extracts Your Cash?

 Breakdown of CORE and why it doesn’t work. Here are the CORE steps. Some groups may have variations of CORE, but this is generally what many groups use:

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

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

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

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

Secondly, with high prices (on average) and with a spotty reputation, most IBOs are unable to retail products. Amway itself has admitted that less than 4% of Amway products are sold to customers (non IBOs). Thus most IBOs are unable to sell products, therefore they are not CORE, therefore upline will blame the IBO for failure..

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

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

It's My Fault?

Happy Memorial Day!   Thank to those who have served in the military and law enforcement!

One of the things Amway IBOs are taught is to blame themselves for is not working the business hard enough or not doing things just right, exactly as upline advised. Actually, nothing could be further from the truth. It's just that uplines want to be absolved from any responsibility so they teach downline that failure in Amway is their own (The downline's) fault. Upline is also quick to take full credit for any success, of course. Why shouldn't these same leaders be held accountable for their downline's results if their advice was followed?

The reason why hard work doesn't equal success is because an Amway IBO is basically a commissioned salesperson. In commissioned sales, one can work hard for no reward and at times, little effort may reap large rewards. But in Amway, with a crappy reputation, Amway IBOs are dealt a handicap that most simply cannot overcome. Getting new people to recruitment meetings is hard enough, not even factoring in the ability to sponsor others. When factoring in these tidbits, it's easy to see why uplines teach buy from yourself and selling is not needed. Buying from yourself seems easy enough and it allows volume to be moved. But after a while, how many "long lasting concentrated" products can you go through in a month's time?

The work involved is very simple. Sell products and get other IBOs (Sponsor) in your downline to be able to leverage your volume. Many IBOs work hard and attend all of the functions and do all of the steps as outlined by upline, but very few reap rewards and most quit when they realize that the system doesn't work. It is sad that on top of losing money, that IBOs are also taught to blame themselves for their demise. Where is the upline when IBOs bust their butts working hard and get no rewards? On top of that, to make it worse, uplines profit from selling training and motivation to their downlines. Why aren't they held accountable?

I've read comments by some Amway defenders wanting to sue Amway critics for a potential loss of business. But most critics, like myself, are simply stating our experiences and opinions. Many of which are true and still happening today. So, I will ask, what about the millions of former IBOs who may have lost billions of dollars because of false claims which led them to believe that they would get rich following upline advice? Maybe former IBOs should unite and file claims against unethical upline leaders who led them astray? Why not hold these leaders accountable?

In any case, hard work doesn't equate success in Amway and I dare anyone to try to prove me wrong.

Funny Amway Quotes?

Over the years, I read some doozies and this is a small compilation of some of the good ones over the years.  Enjoy!  

"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 toliets. 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!"

Crabs In A Pot?

 Another funny story told by my uplines, and apparently still told today is the story of the crabs in a pot. That crabs will prevent other crabs who want to escape the pot by pulling them back in or pulling them down. The story goes that people in the working world also do this, by stepping on others to get ahead. I've never actually seen for myself if crabs actually pull each other down if one of them tries to escape, but I suppose it might be true. I do know of some people who will do anything to get ahead, and they can be ruthless.

But the people who are willing to sacrifice others to get ahead do not appear to the majority, but the exception. Many people are willing to work a career job and maybe over time, they move up the corporate ladder. Many people do this without having to "pull people down" in order to succeed. I believe this crab in the pot is just another ploy by uplines to get IBOs to think that their friends and family, by warning them of the potential perils of Amway, are just crabs pulling you back into the pot. It simply isn't true. Think about it, why are there so many negative stories and experiences floating around out there about Amway and the tool systems? Why is there a lack of new success continuously emerging from Amway? Who do diamonds quit or walk away from the business under unfriendly terms? Where are all the people who retired and walk the beaches of the world? Why do crown ambassadors keep working?

Maybe the success you think there is in Amway simply doesn't exist. Let me repeat. Maybe the success you were led to believe, just isn't there. Amway's been around more than 50 years. Why can't anyone name a dozen or so people who built their Amway business once, then walked away, collecting significant income since? I wonder why Amway doesn't advertise this as a benefit of being an IBO? For that matter, can anyone even name and confirm one person who built Amway and walked away to retire in untold wealth?

Speaking of crabs in a pot. Ever wonder why all these virtuous diamonds break away from their beloved mentors to form their own groups? Ever wonder why there are countless issues of diamonds suing diamonds over tool income? If the money coming in is uncountable, why can't these diamonds come to a peaceful agreement? Why use lawyers which many diamonds talk about as evil because lawsuits are often about getting something for nothing.

Maybe it is the diamonds themselves who are crabs in the pot, all pulling each other down whenever one of them is on the verge of success?

Upline Credentials?

 I recall reading a comment from an Amway zealot. She mentions that someone's credentials must be considered when looking at information that is presented regarding Amway.  I will comment that showing me a sports car or a fancy suit is not proof of financial success. Strange how they question credentials of everyone except their beloved leaders, some of whom have told bold faced lies in the past and have never been held accountable.

I find this subject ironic because not one single upline leader, as far as I know, has ever supplied bonafide credentials about themselves.  When asked, the response was that it's none of your business.  The audience assumes that the person on stage has high credentials, but do they really? 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. Also, the diamond pin is one that is like a lifetime achievement, meaning you could have been diamond for 6 months in 1982 and never qualified again, but you can still wear the pin as you are still recognized as having achieved diamond status. I guess Joecool should be referred to as 4000 PV if that is the case, since I achieved that level back in the 1990's. 

What many people wrongly 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. I doubt that any diamonds would take that bet.  When you did the math based on numbers supplied by Amway, a mega double or triple diamond might earn some money taking a crap if you factor in the time it takes, with their expected monthly income.  But doing the math is like exposing a shadow to light.  The darkness disappears quickly.

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 what their upline is doing financially, especially if that is the basis for purchasing their standing orders and function tickets. And I refer to business (Amway and Tools) income and expenses only, not from other personal sources.

I believe that IBOs and upline leaders do not disclose that information because it would not be beneficial to them. If it were, they would likely publish it freely, just as they flash around copies of checks. IBOs and prospects should take this to heart and ask upline the tough questions